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. Last Updated: 07/27/2016

Holding to Include AvtoVAZ, KamAZ

VedomostiKamAZ head Sergei Kogogin, pictured, has been tipped to run Avtoinvest, which will include AvtoVAZ and KamAZ.

Conglomerate Russian Technologies will consolidate its AvtoVAZ and KamAZ assets under a new holding, Reuters cited sources as saying Friday.

The new entity, called Avtoinvest, will comprise state-owned Russian Technologies’ 25 percent stake in AvtoVAZ, its 37.8 percent stake in KamAZ and its 30 percent stake in Avtodiesel, a major engine manufacturer.

KamAZ chief Sergei Kogogin has been tipped to run the new holding, but Kommersant cited sources in AvtoVAZ and KamAZ as saying a merger is not yet on the table and that Kogogin will only head a joint managing company.

Avtoinvest is slated to administer AvtoVAZ and KamAZ, while Avtodiesel will still be controlled by Oleg Deripaska’s GAZ Group. The merger idea was floated by AvtoVAZ president Boris Alyoshin, who sources said would resign Tuesday, Kommersant reported.

AvtoVAZ’s other shareholders are Renault and Troika Dialog, both of which own a stake of 25 percent plus one share. KamAZ’s other shareholders are Troika Dialog (44.4 percent) and Daimler (10 percent).

AvtoVAZ reported a loss of 14 billion rubles ($443 million) in the first half of 2009, down from profits of 1.4 billion rubles in the same period the year before. The company received a government loan of 25 billion rubles in the second quarter and is now lobbying for a new influx of cash.

KamAZ sustained losses of 1.6 billion rubles in the first half of 2009, down from a profit of 2.6 billion rubles in the same period the year earlier.

The company has, however, boosted its market share for heavy-duty trucks to 58.5 percent from 28.2 percent in the fourth quarter of 2008, benefiting from a hike in tariffs on foreign cars.