Renault strikes new venture deal with Brilliance China Automotive

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PARIS: Shares in French carmaker Renault edged up on Wednesday after Renault struck a deal to buy a 49% stake in Shenyang Brilliance JinBei Automobile company as part of its move to boost sales in China of light commercial vehicles.

Renault shares were up 0.2% in early session trading, outperforming a 0.1% decline on France’s blue-chip CAC-40 index and a flat STOXX Europe 600 autos index.

The deal forms part of an agreement to create a new joint venture with Brilliance China Automotive Holdings Ltd.

Renault said it would buy the 49% equity stake in Shenyang Brilliance JinBei (SBJ) from Brilliance China Automotive, with SBJ restructured into a joint venture company 51% owned by Brilliance China and 49% by Renault.

“As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese light commercial vehicles market which accounts for upwards of 3 million vehicles per year,” said Renault chairman and chief executive Carlos Ghosn in a statement. - Reuters