Gaz makes bid for LDV Vans

Russia's second-biggest car company Gaz is in preliminary discussions to acquire Birmingham-based LDV Group from its owner, private equity firm Sun Capital Partners.

The Russian firm, owned by billionaire Oleg Deripaska, is the country's second-largest car manufacturer and the world's seventh largest light commercial vehicle maker, with 140,000 vehicle sales a year.

Discussions are still at their early stages, but Gaz president Erik Eberhardson moved to allay fears that production of LDV machines would move to Russia if the bid were successful. He said: “I would like to make it clear that if an agreement is reached we will not 'lift and shift' the operations. Manufacturing will continue in Birmingham.”

Sun Capital Partners paid £234m to bring LDV, manufacturer of the Sherpa and Maxus ranges, out of administration in December. LDV's Birmingham plant employs 600 people.