Dentons Europe LLP has advised French automobile manufacturer Renault on the creation of a joint venture with Industrial Development and Renovation Organization of Iran (IDRO) and Parto Negein Naseh, the current importer of Renault’s vehicles in Iran. This transaction is of strategic importance to the French car manufacturer, which currently has 9,7% of the Iranian market.

The joint venture will include a plant with an initial production capacity of 150,000 vehicles a year, to add to Renault's existing production in Iran of 200,000 vehicles a year. It will also establish an engine plant with an annual capacity of 150,000 units. Both manufacturing facilities will be located close to Kaveh, Iran. In addition, it will create an engineering and purchasing center to support the development of local suppliers. Finally, the joint venture will develop an exclusive Renault distribution network, in addition to Negin Khodro’s existing network.

The Renault legal team was led by Jean-Benoit Devauges, Deputy General Counsel, and Christophe Mistral, Managing Counsel, Africa, Middle East.

Dentons Europe LLP advised Renault on all aspects of the joint venture deal. The team was led by partner Pirouzan Parvine, Head of the Iran Team, and included counsels Tannaz Jourabchi-Eisenhut and Clemens Maschke from Dentons in Germany, and Dr. Maryam Ebrahimi, counsel at APP Legal Institute, the Tehran-based law firm associated with Dentons Europe LLP. Renault was also advised on finance related matters by Ladan Saghafi, Head of Transactions at Frontier Partners.

In the past two months, the Iran Team at Dentons Europe has closed deals in Iran with a combined value of more than €7 billion across a wide range of industries, including the oil and gas, renewable energy, railway and automotive sectors.