Fas to Approve Renault Bid for Avtovaz Blocking Stake Next Week

MOSCOW. Feb 22 (Interfax) – The Russian Federal Antimonopoly Service (FAS) will approve French carmaker Renault’s application for the purchase of a blocking stake in Russian car producer Avtovaz (RTS: AVAZ) early next week, the FAS press service told Interfax.

Renault’s petition is in the process of being signed and will most likely be approved on Tuesday, the FAS said.

The FAS received an application from Renault last week on the acquisition of a stake in Avtovaz ranging from 25% plus one share to 50%, however this does not mean that the French carmaker is planning to increase its stake in the Russian company. A source close to the deal told Interfax that Renault is still only planning to buy 25% plus one share in Avtovaz.

The two companies will sign an agreement on the acquisition of a blocking stake in Avtovaz on February 29. Troika Dialog is handling the transaction.

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