Deal to transfer Nissan's Russian assets to NAMI expected to close in November - Trade Ministry

MOSCOW. Oct 14 (Interfax) - The deal to transfer the Russian assets of Japan's Nissan automaker, including the plant in St. Petersburg, to the ownership of the Federal State Unitary Enterprise NAMI is expected to close in November, Deputy Prime Minister and Industry and Trade Minister Denis Manturov told reporters on Friday.

"The Nissan deal is expected to close in early November, subject to all necessary approvals," Manturov said.

Nissan on Tuesday announced that the company's executive committee had approved transferring the assets to NAMI. The scope of the deal includes Nissan's production and research facilities in St. Petersburg, including the Nissan Manufacturing Rus LLC plant, as well as the sales and marketing center in Moscow.

According to the terms and conditions of the deal, Nissan has the option to buy back its stake in the Russian legal entity over the next six years. The deal will reportedly take place at a symbolic price.

Nissan said that the deal would be formally closed in the coming weeks after clearances have been received from the relevant authorities. Nissan also said that it would "incur a one-time loss of around 100 billion yen."

In a message on Nissan and NAMI reaching the agreements, Russia's Industry and Trade Ministry noted that the automaker's enterprise would retain its operating capacity, as well as around 2,000 jobs, and that Avtovaz would provide after-sales service for Nissan cars.

"NAMI can attract other companies as production partners, and set up joint ventures," Manturov said, as quoted by the ministry.

Nissan's plant in St. Petersburg opened in June 2009. The company invested $200 million in the first phase, and 167 million euros in expansion. The plant, which has capacity to produce 100,000 vehicles per year and employs about 2,000 people, assembled the X-Trail, Murano, Qashqai and Terrano models.