Renault takes over 38% of Moroccan state's shares in car-maker

French car maker Renault bought over 38% of the Moroccan state shares in car-maker (SOMACA), for 95 million DIRHAMS (US$ 10 million).

Under a cession convention signed this Saturday, Renault will buy another 26% of SOMACA's capital by next September and the remaining 12% by October 2005.

Renault, which already owned 8% of Somaca capital through its Morocco affiliate, now possesses 46%. The other shareholders are Italy's Fiat auto and French Peugeot which hold each 20% of SOMACA capital and private investors (14%).

The Moroccan state and Renault also agreed that Renault will start assembling in SOMACA starting end of 2005 the L90 car, a family and economical car destined for the domestic market and exportation.

Renault says in a press release it has sold in the two first quarters of 2003 4,135 vehicles in Morocco, an increase of 9.7% compared to the same period of 2002.

The privatization convention was signed in the presence of prime minister, Driss jettou, finance and privatization minister, Fathallah Oualalou, industry, trade and telecommunication minister, Rachid Talbi Alami, and Renault's international operations director, Luc Alexandre Menard.