RABAT, July 23 (Reuters) - French car maker Renault said on Wednesday it is in talks to buy the 38 percent stake the Moroccan state owns in local car assembler Somaca.
The operation would help Renault create a North African hub for exports to the region, to sub-Saharan Africa and even to southern Europe, industry sources in Morocco said.
"We are in negotiations with the government over the 38 percent it has put up for sale," a Renault spokesman said in Paris. He said the company hoped talks would be concluded soon.
Renault currently owns eight percent of Somaca, which is on the government's privatisation list. It was established in Casablanca in 1959 and employs around 900 people.
French rival Peugeot and Fiat each hold 20 percent of Somaca, which is producing only a third of its annual capacity of 60,000 vehicles.
Fiat plans to pull out of Morocco by the end of the year, ending Somaca's assembly lines of such small economy cars as the Fiat Uno, popular with Moroccan taxi drivers.
The sources and local press reports said Renault planned to invest 20 million euros in Somaca, more than double its output and produce a so-called "economic car" from 2005. It currently has an annual turnover of 450 million dirhams ($47 million).
"If we are looking to increase our stake it's in order to develop our industrial plans," the Renault spokesman said.
Chairman Louis Schweitzer said last month Renault was in "advanced talks" with a local investor in Morocco over plans to build a car factory. He said it would likely be smaller than a plant Renault recently opened in Russia, which makes around 1,500 cars per month.
The Moroccan government said earlier this year it was in talks with Malaysian state car maker Proton over Somaca. Press reports said Prime Minister Driss Jettou favoured Renault in the end. (Additional reporting by Rebecca Harrison in Paris)