Riyadh, June 30, 2024 – Saudi Aramco, the state-owned oil giant, is poised to secure a significant stake in a powertrain joint venture alongside Renault SA and China’s Zhejiang Geely Holding Group Co. According to sources cited by Bloomberg, Aramco’s investment will amount to approximately 10% of the venture.
Key Details:
- Horse Powertrain Ltd. Valuation: The transaction values Horse Powertrain Ltd. at an impressive €7.4 billion (equivalent to $7.9 billion). Both Renault and Geely will retain approximately 45% ownership in the venture.
- Announcement Anticipated: An official announcement regarding the deal is expected by the end of this month.
- Adjusted Stake: While the 10% stake falls short of Aramco’s initial target, the agreement is on track to be finalized within the coming weeks.
- Letter of Intent: On March 1, 2023, Aramco signed a letter of intent, expressing interest in becoming a minority stakeholder in a new powertrain technology company. This joint venture, established by Geely Holding Group, Geely Automobile Holdings Limited, and Renault Group, will focus on advancing internal combustion and hybrid powertrain technologies.
Saudi Aramco’s strategic move underscores its commitment to diversifying its portfolio beyond oil and gas, positioning itself at the forefront of cutting-edge automotive technology.