Aramco Completes Acquisition of 10% Stake in Horse Powertrain Limited
Foreks - Aramco (TADAWUL:2222), one of the world's leading integrated energy and chemical companies, has completed the acquisition of a 10% stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions, through its wholly-owned subsidiary, Aramco Asia Singapore Pte. Ltd. This transaction is based on Aramco's efforts to develop new mobility solutions that have the potential to reduce transportation emissions.
The acquisition occurred following the signing of definitive agreements on June 28, 2024, and the receipt of all necessary regulatory approvals. Aramco's investment was made based on Horse Powertrain's operating value of €7.4 billion, with Renault Group and Geely each holding a 45% stake.
Ahmad O. Al Khowaiter, Aramco's Vice President of Technology and Innovation, stated: "Addressing transportation emissions requires a diverse range of approaches that consider the diversity of the global vehicle fleet, the wide disparities in transportation infrastructures, and the specific needs of drivers in different countries. At Aramco, we are pursuing various potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, while seeking opportunities to make an impact. Our investment in Horse Powertrain builds on our extensive R&D efforts in this area. By joining forces with two of the world's leading automotive manufacturers, we aim to leverage our combined expertise to advance lower-emission mobility solutions."
Horse Powertrain's CEO, Matias Giannini, expressed: "We are very pleased to have completed Aramco's investment in Horse Powertrain. Aramco's expertise in alternative and synthetic fuels makes it an ideal partner for us to deliver low-emission powertrain solutions. This partnership will further strengthen our technological leadership, making Horse Powertrain a much more valuable partner for automotive brands looking to leverage our expertise and global manufacturing footprint."
Jamal Muashsher, CEO of Valvoline Global Operations, stated: "As Horse Powertrain's technical partner and supplier, we eagerly anticipate utilizing Valvoline Global's over 150 years of automotive expertise and tradition of innovation to develop future-ready solutions in internal combustion engine technology, fuels, and lubricants. This new joint venture with Horse Powertrain and Aramco builds on Valvoline Global's strong history with original equipment manufacturers. Through this collaboration, we contribute to shaping the next generation of mobility."
Aramco's investment is expected to accelerate Horse Powertrain's efforts in developing next-generation internal combustion engines (ICE) and hybrid powertrains, as well as complementary technologies such as alternative fuels and hydrogen solutions. As part of this transaction, Aramco and its affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants. Through technological leadership, global manufacturing, and economies of scale, Horse Powertrain will enhance its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to be a unique partner in contributing to the reduction of global vehicle emissions with advanced, accessible hybrid and ICE powertrain solutions.
Horse Powertrain's board currently consists of seven members: • Three directors from Geely: Daniel Donghui Li (Geely Auto Vice Chairman and Geely Holding CEO), who will be the Chairman of the Board; Jerry Gan (Geely Auto Group CEO); and Andy An (Chairman of Geely Holding and Geely Auto Group) • Three directors from Renault Group: François Provost (Renault Group Director of Supply, Partnerships, and Public Affairs); Thierry Charvet (Renault Group Director of Industry and Quality); and Denis Le Vot (Dacia CEO and Renault Group Supply Chain Director) • One director from Aramco: Ali A. Al Meshari (Aramco Senior Vice President of Technology Oversight and Coordination)