The legendary French car brand returned to the Russian hands for only 1 ruble
According to Reuters news agency, Russian automotive research company NAMI will take over a 68% stake in Renault for a symbolic price of 1 ruble.
NAMI was founded more than a century ago and is Russia’s leading scientific organization in the field of automotive industry development. In the past, NAMI has been responsible for the design and production of many models, but perhaps the most famous is the limousine called Aurus Senat of Russian President Vladimir Putin.
This transfer is one of the latest examples of the policy of gaining control and “acquiring” Western businesses located in the country at a cheap price, in the context of a series of companies massively withdrawing from the market. Russian school.
The local news agency quoted Russian Trade Minister Denis Manturov as saying that Renault will still have a chance to regain control of AvtoVAZ in the next 5-6 years, if desired; but not for 1 ruble. “If during this period we invest money, it will all be included in the cost of the transfer. There is no such thing as a gift here,” Mr. Manturov said.
In addition to the share transfer, the Renault plant in Moscow, which produces both Renault and Nissan vehicles, will also be sold to the city government.
Renault started holding shares of AvtoVAZ in 2008 with the rate of 25%, worth more than 1 billion USD, then gradually increased the ownership percentage to full control in 2017. With such a large stake, Renault is the Western brand with the most exposure to Russia, and recently announced that it would be shutting down operations in the country under pressure from governments and the public alike.
Currently, neither Renault nor the French government have made any comment regarding the above share transfer.
More than 750 companies have announced the cessation of operations in Russia after the country’s military attack on Ukraine on February 24, leaving assets worth millions of dollars.
French electrical appliance maker Schneider Electric on Wednesday (April 27) said it would sell its operations in Russia and Belarus to local management. At the same time, they signed a letter of intent with the designated buyers.
Another well-known example is the French bank Societe Generale, which obtained a profit of 3 billion euros from the sale of its subsidiary Rosbank to Interros Capital, an investment firm with ties to the Russian oligarch Vladimir Potanin.
There are only a few examples of foreign companies’ interest in taking over Russian businesses.
Anheuser-Busch InBev is in talks to sell its stake in a Russian and Ukrainian joint venture to its Turkish counterpart, in a deal that could result in a $1.1 billion fee for the world’s largest brewer. .
British energy company Shell is said to be in talks with several Chinese companies to sell its stake in a major Russian gas project. Shell declined to comment on the report.
In Vietnam, this brand has actually been present for more than 10 years through the distributor Auto Motors but “escaped” from Vietnam in 2017. By 2019, Renault has returned to the unit. new distributor, which is CT Wearnes Vietnam.
However, in October 2021, Renault decided to officially withdraw from the Vietnamese market, along with that, maintenance and repair services were not maintained. Accordingly, the distributor will support to buy back Rebault cars of customers who no longer need to use them or donate a fee if they continue to use the car.
Reference: Reuters
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
