KamAZ has been struggling to come out of the economic slowdown and has planned major investments to modernize its plants and production facilities. Germany’s Daimler Motors – which holds 11% share in KamAZ, will start a joint production soon. Kogogin said Rostechnology – which is also a shareholder of KamAZ, will acquire MAZ which will boost the company’s distribution network and improve sales.

“MAZ can boost our client distribution base and sales of truck parts – engines, cabs, transmissions.  According to KamAZ strategic development plan to 2020, the company will develop joint ventures at the expense of expanding the range, increase production and enhance the localization of strategic partnership projects”, Kogogin said.

Rostechnology holds 49.9% shares of KamAZ followed by Russian investment bank Troika Dialog – which holds 27.3%, and Daimler and EBRD holding 11% and 4% respectively.

Rostechnology’s auto division is negotiating with MAZ on behalf of KamAZ and according to Kogogin “We are at the beginning of negotiations with MAZ. Rostechnology will hold all talks on the deal. And at this time before official valuation of the company MAZ, KamAZ is not ready to acquire it”.

VTB Capital’s analyst Vladimir Bespalov said with MAZ acquisition, KamAZ’s capacity will increase by 25,000 units. He values MAZ at $1 billion.