PARIS - Renault said on Monday it had signed a deal with German harvesting machinery maker Claas in which the German group will take a 51 percent stake in Renault Agriculture.
Renault will in the short term retain a 49 percent interest in the tractor making unit, with Claas increasing its stake to 80 percent "in the longer term" Renault said.
Renault said the merged activities would allow economies of scale and sharing of knowledge and best practices between the two firms.
The Renault brand name will continue to be used and Renault Agriculture will continue to exist as a legal entity, Renault said. The deal will have no effect on labor contracts.