Renault Group signs pact to sell Renault Russia, controlling stake in AVTOVAZ
The agreement provides for an option for Renault Group to buy back its interest in AVTOVAZ, exercisable at certain times during the next 6 years.
The Renault Group Board has unanimously approved an agreement to sell 100 percent of Renault Group's shares in Renault Russia to Moscow City entity and its 67.69 percent interest in AVTOVAZ to NAMI (the Central Research and Development Automobile and Engine Institute).
The agreement provides for an option for Renault Group to buy back its interest in AVTOVAZ, exercisable at certain times during the next 6 years. Luca de Meo, CEO Renault Group explained, "We are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group's performance and our ability to return to the country in the future, in a different context." The closing of these transactions is not subject to any conditions, and all required approvals have been obtained
As announced on March 23, a non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill of the Group in Russia should be recorded in the 2022 first half results. As of December 31, 2021, this value amounted to 2,195 million euros.
Russian operations will consequently be deconsolidated in Renault Group consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities. Renault Group confirmed its financial outlook as announced on March 23, 2022.
Also read
Renault unveils 'Renaulution' transformation strategy
Renault Group aims to be 100 percent EV brand in Europe by 2030
RELATED ARTICLES
NXP launches integrated platform to simplify SDV development, cut costs
Open S32 CoreRide platform combines processing, vehicle networking and system power management with integrated software ...
Yamaha partners Lola Cars to develop and supply powertrains for Formula E
Japanese automaker aims to acquire cutting-edge electric technology in the premier EV race series. This multi-year partn...
Seoul Semiconductor supplies brightness-optimised headlamp tech for 2024 Genesis GV80
Hyundai Motor Group’s Genesis GV80 luxury SUV uses wire-free optical semiconductor Wicop technology to realise all the f...