China's Geely buys 26.4% stake in Renault's Brazil unit

French carmaker Renault said it has signed a deal with Chinese Geely to sell it a 26.4% stake in its Brazilian subsidiary, thus continuing the strategic cooperation between the companies.

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As a minority shareholder, Geely will have access to Renault do Brasil's industrial and commercial resources, allowing it to accelerate its expansion in the region's automotive market. Renault do Brasil will make Geely Auto-branded vehicles alongside Renault vehicles at the Ayrton Senna plant in Sao Jose dos Pinhais in the state of Parana, the French company said. Following the agreement, Reuters reported that Renault is in talks with more automakers, including China's Chery, to explore partnerships to jointly produce and sell cars, citing a top executive.

Fabrice Cambolive, Renault Group's chief growth officer, told reporters about the talks while announcing the completion of a deal in Brazil with China's Geely.