AvtoVAZ Climbs to Four-Month High as Renault-Nissan Deal Nears
OAO AvtoVAZ rose to the highest level in more than four months on expectations Renault SA (RNO) and Nissan Motor Co. (7201) will sign a final accord this week to raise their holding in the largest Russian passenger-car producer.
AvtoVAZ jumped as much as 10 percent and traded up 7.1 percent at 16.901 rubles at 12:11 p.m. in Moscow, the highest since July 20. The stock surged 17 percent on Dec. 7.
Renault and Nissan will sign the agreement with state-run Russian Technologies Corp. by the middle of this month to boost its holding to about 50 percent, Interfax said last week. Russia’s Federal Anti-Monopoly Service approved the deal in September. Renault holds 25 percent in AvtoVAZ.
Renault and Nissan will jointly invest about $750 million to take a more than 67 percent stake in a joint venture with Russian Technologies that will in turn own 74.5 percent of AvtoVAZ, under a deal set to be completed by 2014, the companies said May 3.
Russian Technologies spokesman Valery Kartavtsev and Moscow-based Renault spokeswoman Oxana Nazarova declined to comment on the timing when called by Bloomberg.
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