Deal on transfer of Mazda stake in JV to Sollers should be closed by December - source

MOSCOW. Nov 10 (Interfax) - A deal to transfer Mazda's stake in a parity JV to produce Japanese cars in the Far East (Mazda Sollers Manufacturing Rus LLC, MSMR) to Sollers could be closed by December, a source familiar with talks between the parties told Interfax.

"The deal could be closed at the end of November," the source said.

The Sollers Group would not comment on the deal's closing date, but noted that the necessary approvals from the Federal Antimonopoly Service and the government commission had been obtained.

Mazda has signed an agreement to transfers its stake in their equal joint venture MSMR to Sollers , the automotive manufacturer said later in a financial statement for the second quarter.

The agreement was signed on October 24, and the transfer price is 1 euro. The deal includes an option for Mazda to buy back its stake in the JV within the next three years.

"The transfer procedure will be executed as soon as possible after receiving approval from the relevant authorities," Mazda said.

Mazda expects to record a loss of 12 billion yen, or just over $82 million at the current exchange rate, in connection with the transfer.

According to Mazda, discussions with Sollers continued after it ceased shipments of parts to MSMR in March and after MSMR ceased operations at the end of April, but it does not see a path to restarting the business in Russia.