Russian firm to invest $1.54 billion in Magna

Russian Machines, a subsidiary of Moscow-based Basic Element, plans to invest $1.54 billion in Canadian supplier Magna International Inc. as part of an alliance to pursue growth opportunities in Russia and the surrounding markets, according to a joint statement released this morning by the two companies.

Russian Machines holds an interest in Gaz Group which is Russia's second-largest automotive company. Magna has a unit in Austria that builds vehicles for the Chrysler, Mercedes-Benz, Saab and BMW nameplates. Magna, which is holding its annual shareholders’ meeting today in Toronto, also is considered a leading bidder for the Chrysler Group, the Auburn Hills-based division of DaimlerChrysler AG.