PARIS (Agefi-Dow Jones)–The car manufacturer Renault announced on Monday the signing of agreements to sell its activities in Russia and confirmed that it would record a charge in its first half results related to these activities.
“Renault Group’s board of directors has unanimously approved the signing of the agreements to sell Renault Group’s 100% stake in Renault Russia to the city of Moscow and its 67.69% stake in Avtovaz to NAMI (l ‘Central Automotive and Engine Research and Development Institute),’ the group said in a statement.
“The completion of these transactions is not subject to any conditions, and all required authorizations have been obtained,” Renault added.
According to the agreement signed with the NAMI institute, Renault could buy back its stake in the Russian car manufacturer Avtovaz “at certain periods over the next 6 years”.
Renault has confirmed that a “non-cash adjustment charge corresponding to the value of the group’s consolidated intangible, tangible and goodwill assets in Russia” will be recorded in its accounts for the first half of 2022. This value amounted to 2.2 billion euros as of December 31, 2021, recalled Renault.
The group also confirmed its financial outlook, which it had lowered on March 23, following the announcement of the suspension of its activities in Russia.
“Ahead of its medium-term Renaulution objectives, Renault Group will present, during a Capital Market Day in the fall of 2022, the update of its financial outlook and its strategy, positioning it as a benchmark competitive, tech player. and durable”, further indicated the manufacturer.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: JXM
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May 16, 2022 01:29 ET (05:29 GMT)