Renault-Nissan Nears AvtoVAZ Deal

The Renault-Nissan alliance will sign a final agreement next week to take control of Russia's largest automaker OAO AvtoVAZ, according to news reports that cite unidentified sources.

Renault-Nissan, which already owns a 25% stake in the producer of Lada cars, would buy an additional 25% from investment firm Troika Dialog for about €570 million.

The alliance agreed in May to form a venture by 2014 with Russian Technologies Corp., which holds 24.5% of AvtoVAZ's equity. Renault-Nissan would own 67.1% of the venture that would control AvtoVAZ through its 74% stake.