Deals
Ghosn Boosts Renault China Ties With Brilliance Van Venture
- French carmaker to buy 49% of struggling minibus subsidiary
- Venture plays to Renault strength in light-commercial vehicles
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Renault SA agreed to acquire almost half of Brilliance China Automotive Holdings Ltd.’s unprofitable minibus unit, giving the French carmaker a foothold in light commercial vehicles in the world’s largest auto market.
The manufacturers will invest a combined 1.5 billion yuan ($221 million) in Shenyang Brilliance Jinbei Automobile Co. in proportion to their stakes, the companies said in a joint statement Wednesday. As part of the deal, Renault will pay 1 yuan to take a 49 percent stake in the subsidiary. Brilliance shares gained 3.2 percent to HK$14.30 at the close in Hong Kong, the biggest gain since May 31.