MOSCOW, April 25. /TASS/. A Chinese auto group may purchase Renault's Avtovaz stake in May or June, a source close to the Russian car manufacturer told TASS.
"The transaction on the sale of Renault's stake may be concluded by the end of May or by mid-June, and one of the Chinese car groups is being considered as purchaser," the source said.
Renault owns 68% in Lada Auto Holding, a joint venture with Rostec, which owns 100% of Avtovaz.
Last week, Rostec and Avtovaz stayed tight-lipped on the issue. The press service of Renault’s Russian office recommended that TASS contact the company’s head office in France. TASS has submitted a request to the press service of the Russian Industry and Trade Ministry.
Renault’s press service reported in late March that the operation of the Moscow facility would be suspended, while the company would explore possible options on its participation in the work of Avtovaz. The Bloomberg news agency reported that the car manufacturer was exploring the option of transferring its Avtovaz stake ownership rights to a Russian investor. Renault will not be able to divest its stake to Avtovaz co-owner Rostec as the state corporation is under sanctions, the agency said citing sources.
Gazeta.ru said on Friday that Renault was bracing to sell Avtovaz and it intended to transfer the bulk of its foreign management from Tolyatti to Moscow in May. Rostec or structures that are part of the Russian Industry and Trade Ministry could become the owners of the stake, according to the publication.
Avtovaz manufactures cars in full production cycle and auto components for two brands - Lada and Renault. The group’s facilities are located in Togliatti - Avtovaz, Lada West Togliatti, as well as in Izhevsk - Lada Izhevsk.