July 5, 2017 / 7:10 AM / 3 years ago

Renault shares edge higher on new venture deal with Brilliance China Automotive

PARIS, July 5 (Reuters) - Shares in French carmaker Renault edged up on Wednesday after Renault struck a deal to buy a 49 percent stake in Shenyang Brilliance JinBei Automobile company as part of its move to boost sales in China of light commercial vehicles.

Renault shares were up 0.2 percent in early session trading, outperforming a 0.1 percent decline on France’s blue-chip CAC-40 index and a flat STOXX Europe 600 autos index.

The deal forms part of an agreement to create a new joint venture with Brilliance China Automotive Holdings Limited .

Renault said it would buy the 49 percent equity stake in Shenyang Brilliance JinBei (SBJ) from Brilliance China Automotive, with SBJ restructured into a joint venture company 51-percent owned by Brilliance China and 49-percent by Renault.

“As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese light commercial vehicles market which accounts for upwards of 3 million vehicles per year,” said Renault Chairman and Chief Executive Carlos Ghosn in a statement. (Reporting by Sudip Kar-Gupta; Editing by Andrew Callus)

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