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  • Oct 29th, 2005
  • Comments Off on Renault raises stake in Moroccan assembly plant
French Renault raised its stake in Moroccan car assembler Somaca to 66 percent after buying the state's remaining 12 percent stake, the finance and privatisation ministry said on Friday.

The deal, worth 30 million dirhams ($3.3 million), is part of a July 2003 agreement under which the French firm paid 65 million dirhams to buy the state's first 26 percent stake in Somaca, the ministry said in a statement.

The July 2003 transaction allowed Renault to hike its stake in Somaca from eight to 34 percent. Last April, it bought an additional 20 percent stake held by Italian company Fiat for an undisclosed amount. Somaca has become Renault's African production platform for its no-frills Logan car, which is projected to account for a quarter of the company's sales by 2010.

PSA Peugeot Citroen holds 20 percent of Somaca, which also serves as an assembly site for some of its Peugeot and Citroen cars.

Copyright Reuters, 2005


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