Two units of Geely Automobile (HKG:0175) will contribute the full share capital of their subsidiaries and cash to Renault do Brasil in exchange for a combined 26.4% stake in the joint venture, according to a Friday filing to the Hong Kong bourse.

Geely Automobile (Singapore) and Geely (Singapore) Holding will hold 21.29% and 5.11% of the JV, respectively, while Renault SAS will own 73.57%. An independent third party will hold the remaining 0.03%.

Under the joint venture agreement signed the same day, the parties will collaborate through the new entity on the production and distribution of passenger vehicles under the Renault and Geely brands, and light commercial vehicles under the Renault brand in Brazil.

Renault do Brasil will lead development efforts for both brands in the local market and is expected to be primarily self-financed.