Aramco Completes Horse Powertrain Stake Acquisition

Wedoany.com Report-Dec 04,  Saudi Arabian Oil Co. (Aramco) has completed the purchase of a 10 percent stake in Horse Powertrain, in an agreement announced June. Aramco said in a media release the transaction, completed through its unit Aramco Asia Singapore Pte. Ltd., is part of efforts to develop new mobility solutions with the potential to reduce transport emissions.

Aramco said its investment is based on a EUR 7.4 billion ($7.8 billion) enterprise valuation of Horse Powertrain, a hybrid and internal combustion (ICE) powertrain solutions specialist. Renault Group and Geely each retain a 45 percent stake.

“Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries”, Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology and Innovation, 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 research and development in this field. In joining forces with two of the world’s leading carmakers, we aim to leverage our collective know-how to take lower-emission mobility solutions forward”.

Aramco said its investment is expected to accelerate Horse Powertrain’s efforts to develop next-generation ICE and hybrid powertrains, along with complementary technologies like alternative fuel and hydrogen solutions.

As part of the agreement, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants, the company said.

“Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint”, Matias Giannini, Chief Executive Officer of Horse Powertrain, said.

The Board of Directors of Horse Powertrain is now composed of seven members, Aramco said. Three directors come from Geely, three from Renault Group, and one director from Aramco, it said.

Daniel Donghui Li, Vice Chairman of Geely Auto and CEO of Geely Holding, will become Chairman of the Board.

Horse Powertrain has 17 global plants, 10 industrial customers in 130 countries, five research and development centers, and around 19,000 employees. It is focused on China, Europe, and Latin America.