Groupe Renault and Brilliance China Automotive Holdings Limited (CBA) signed a binding framework cooperation agreement covering the main principles of the formation and operation of a joint venture (JV) in China focusing on the manufacturing and sale of light commercial vehicles (LCV).
To facilitate the formation of the JV, CBA will acquire a 100% holding in Shenyang Brilliance JinBei Automobile Co., Ltd. (SBJ), a leader in the Chinese LCV market with a strong network and market presence throughout China, after which Groupe Renault will purchase from CBA a 49% equity interest in SBJ resulting in a restructured joint venture company held by CBA (51%) and Groupe Renault (49%).
As a top global automotive company, Groupe Renault is entering into a promising and high potential Chinese LCV market which accounts for upwards of 3 million vehicles per year. By joining hands with CBA, Groupe Renault aims at becoming a major LCV player in China. We will bring our management expertise and know-how on the products and technology.—Carlos Ghosn, Chairman and CEO of Renault
Beyond the existing JinBei vehicles, the joint venture will also develop, manufacture and distribute new vehicles and services under both the JinBei and Renault brands.
The transaction remains subject to customary regulatory approvals in the PRC and Hong Kong and is subject to CBA shareholders’ approval.