MOSCOW, Russia - Russian state-owned investment bank Sberbank Capital will acquire a controlling stake of 51% in local carmaker Derways, RIA Novosti reports. The company has already received an approval from the Federal Anti Monopoly Service of Russia (FAS Russia) for the proposed acquisition.
With the takeover, Derways could be part of United Automobile Group (UAG), a Sberbank subsidiary, which also includes Izhevsk-based IzhAvto. The accumulated production capacity of the three companies would exceed 550 thousand vehicles and 300 thousand powertrains annually.
Derways was founded in 2003 as the first private car manufacturer of Russia. It builds Chinese brands like Geely, Haima and Lifan at its plant in Cherkessk, the capital city of the Karachay-Cherkess Republic.
