Aramco acquires a 10% minority stake in Horse Powertrain

Aramco finalized its purchase of a 10% stake in London-based Horse Powertrain — a JV between French carmaker Renault and China’s Geely — following the signing of definitive agreements back in June, according to a joint press release. Aramco had initially pursued a 20% stake in the powertrain technology venture under a preliminary agreement with Renault and Geely last year.

The agreement values Horse Powertrain at EUR 7.4 bn, implying a transaction value of EUR 740 mn. The agreement will see Renault and Geely each retain a 45% stake. Aramco Senior Vice President of Technology Oversight & Coordination Ali Al Meshari (Linkedin) will have a seat on the board, while the other owners will have three seats each.

Use of proceeds: “Aramco’s investment is expected to accelerate Horse Powertrain’s efforts to develop next‑generation ICE (internal combustion engine) and hybrid powertrains, along with complementary technologies like alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants,” according to the press release.

What they said: “At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference. Our investment in Horse Powertrain builds on our considerable R&D in this field,” said Aramco Executive Vice President of Technology & Innovation, Ahmad Al Khowaiter.

About Horse Powertrain: The London-based JV was set up to manufacture next-generation powertrain solutions, including internal combustion engines that use alternative fuels such as ethanol, methanol, and hydrogen, as well as full hybrids and long-range plug-in hybrids, according to its website. It currently operates 17 global plants and five R&D centers with 10 industrial customers in 130 countries, according to the release. It expects to produce some 5 mn powertrain units annually.