| TOKYO, June 29
TOKYO, June 29 Renault SA may raise
its stake in top Russian car maker AvtoVAZ to 35
percent, while Nissan Motor Co will likely own 15
percent, Renault-Nissan CEO Carlos Ghosn said in an analyst
Ghosn gave the breakdown during a presentation to financial
analysts of Nissan's new, six-year business plan on Monday,
according to several participants reached by Reuters on
The company had previously not publicly disclosed the
specific breakdown of the stakes sought by Renault and Nissan in
the Russian company.
The Franco-Japanese auto group has been in talks with
AvtoVAZ's shareholders to take a majority stake in the maker of
Lada cars, with Ghosn flagging a completion of the deal by the
end of this year. Renault already owns 25 percent plus one share
The additional 10 percent stake acquired by Renault and
the 15 percent stake from Nissan would be worth about $415
million, based on AvtoVaz's current market value.
"We will end up very likely with something around 15 percent
shares for Nissan and 35 percent plus for Renault," Ghosn told
"Why 15 percent for us (Nissan)? Because this will
give us some advantages financially. And, on top of this, I
would like to also ... have at least two Nissan representatives"
on the AvtoVAZ board, Ghosn was quoted as saying.
Renault and Nissan are both looking to use the production
capacity available at AvtoVAZ's sprawling Togliatti factory to
boost sales in the fast-emerging market.
Ghosn also said during the same conference call that he did
not expect a change in the Renault-Nissan alliance's capital
structure, now under review, for at least two years.
(Reporting by Chang-Ran Kim. Editing by Michael Flaherty)