Selling most of Renault Agriculture to Germany's Claas marks the end of Renault's drive to shed non-core assets, said Georges Douin, executive vice president in charge of international operations.
Last month, Renault sold 51 percent of its Renault Agriculture subsidiary to Claas, which is already Europe's largest producer of farm equipment. The transaction price was not disclosed.
The plan is for Claas to eventually boost its stake to 80 percent. Renault will keep a 20 percent stake as the Renault brand will continue to be used by the farming equipment maker.
Acquiring Renault Agriculture extends Claas' position at the top of the consolidating agriculture-machinery segment in Europe and broadens its access to the French market.
Claas revenue last year grew 10 percent to E1.27 billion. Renault Agriculture sold 9,500 tractors last year and generated sales of E637 million.
"Renault Agriculture was getting by, but it was nevertheless a matter of concern," Douin said. "With it goes Renault's last substantial asset that did not belong to our core business."
Once largely diversified, Renault in the late 1990s began selling non-core assets and using the proceeds to finance its acquisitions or controlling stakes in Japan's Nissan, South Korea's Samsung Motors and Romania's Dacia.
In 1999, it sold 51 percent of Renault Automation to Italy's Comau, and its engine-component making arms to TWR Engine Components.
In 2001, Renault sold all of its wholly owned logistics unit CAT France to European consortium Global Automotive Logistics. The same year Renault sold its half of bus maker Irisbus Holding to Fiat group's truck-making subsidiary Iveco, which owned the other half of Irisbus.
Renault in 2001 also transferred its RVI heavy truck operations to AB Volvo in exchange for a 20 percent stake of the Swedish truck maker. RVI has been since renamed Renault Trucks and operates as part of Volvo Global Trucks, a unit of AB Volvo.
