European Commission approves proposed acquisition of AvtoVaz by Renault and Russian Technology

BRUSSELS - The European Commission has cleared under the EU Merger Regulation the proposed acquisition of joint control over AvtoVaz of Russia by Renault SA of France and Russian Technology of Russia. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Renault is a diversified automotive group which produces and sells passenger, commercial and light commercial vehicles under the brands Renault, Dacia and Samsung Motors. In addition, Renault has two strategic shareholdings in AB Volvo and Nissan. Russian Technology is a state corporation managing the participations of the Russian state in companies not related to the car industry. AvtoVaz is a Russian-based passenger car manufacturer operating under the brand Lada. It is predominantly active in the Russian Federation.

The Commission’s examination of the proposed transaction showed that it would not give rise to competition concerns in the EEA in any of the markets concerned. The proposed transaction would bring about only a very minor increment in market share, which would have hardly any influence on Renault's market position in the EEA.