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.
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.
Raindrops cover the logo of French car manufacturer Renault on a automobile seen in Paris, France, January 14, 2016.
REUTERS/Christian Hartmann/File PhotoPARIS 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.
as declared in Brilliance China Automotive Holdings Ltd. (1114.HK) said Wednesday it has agreed to sell 49% stake in Shenyang Brilliance JinBei Automobile Co. Ltd. to an international multibrand group Renault SAS.
Shenyang Brilliance JinBei Automobile, which manufactures minibuses and automotive components in China, posted net loss for both 2015 and 2016, it said.
Continue Reading BelowAfter the deal, Renault will become Brilliance China Automotive’s joint venture partner in the light commercial vehicles (LCV) segment in China, the Hong Kong-listed company said.
in France for 1 yuan, marking a ‘crucial strategic move’ to turn around its existing minibus operation.
Write to Chester Yung at firstname.lastname@example.org(END) Dow Jones NewswiresJuly 04, 2017 22:16 ET (02:16 GMT)
as declared in
BRIEF-Renault confirms new deal with Brilliance China Automotive
By joining hands with CBA, Groupe Renault aims to become a major LCV player in China.
* Project will facilitate the common development of LCV business in China by Groupe Renault and CBA.
* “As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese LCV market which accounts for upwards of 3 million vehicles per year.
We will bring our management expertise and know-how on the products and technology,” said Carlos Ghosn, Chairman and CEO of Renault, in a statement
PARIS, July 5 Renault:* Renault and Brilliance China Automotive Holdings Limited (CBA) have signed a binding framework cooperation agreement related to the formation of a joint venture in China dedicated to the manufacture and sale of light commercial vehicles (LCV)* Groupe Renault will purchase from CBA a 49% equity interest in Shenyang Brilliance JinBei Automobile Co., Ltd. (SBJ) with SBJ being restructured into a joint venture company owned by CBA (51%) and Groupe Renault (49%).
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