Reuters quoted a source familiar with the discussions said negotiations over the Renault Nissan alliance plan to take a majority stake in top Russian automaker AvtoVAZ are likely to take a few more months.

The comment came after Japan Nikkei business daily reported on Thursday that Nissan Motor Co was in the final stages of discussions to take a stake of roughly 25% in AvtoVAZ for up to USD 1 billion. Partner Renault SA already owns 25% of AvtoVAZ for which it paid USD 1 billion in 2008 while state owned Russian Technologies holds another 25%.

The source who asked not to be identified because the discussions are not public, denied a final deal was close. Nissan spokesman Mr Simon Sproule declined to comment saying the report was based on speculation.

Mr Carlos Ghosn Renault Nissan Chief Executive has flagged the alliance plan to take a combined stake of at least 50% in the maker of Lada cars with Nissan due to purchase more than half of the additional share.

Speculation over the three-way deal has swirled since last year as the Russian government aims to attract the world major car makers to become bigger players in the country to help modernize the industry. Global automakers for their part see Russia as a major growth market where annual sales are expected to double to 4 million vehicles over the next few years.

Renault-Nissan has the green light from Moscow to raise their ownership in AvtoVAZ via deals with Russian Technologies and Russian brokerage Troika Dialog which manages 25% of AvtoVAZ. Troika CEO Mr Ruben Vardanyan told Reuters in April the brokerage could sell some shares of AvtoVAZ on the open market.

(Sourced from Reuters)