Aramco to acquire 10% stake in UK’s Horse Powertrain  

Aramco

Saudi Aramco has signed agreements to acquire 10 percent of UK-headquartered Horse Powertrain, a thermal engine joint venture between Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings.

The Saudi oil major will acquire the equity stake in equal parts from Renault and Geely, each retaining a 45 percent stake.

Aramco’s payment is subject to closing conditions, including the receipt of regulatory approvals, at an enterprise valuation of €7.4 billion ($7.9 billion).

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This investment aims to enhance the oil producer’s contribution to the global energy transition by developing and commercialising more efficient mobility solutions.

The agreements also include collaboration arrangements for Aramco and Valvoline on technologies, fuels and lubricants to collectively improve the performance of Horse Powertrain’s internal combustion engines.

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Aramco’s investment is expected to directly contribute to developing and deploying affordable, efficient and lower-carbon emission internal combustion engines globally, said Ahmad Al Khowaiter, executive vice president of technology and innovation. 

Last week the Saudi-listed company signed a non-binding agreement to buy 5 million tonnes per year of LNG for 20 years and a 25 percent stake in phase 2 of Sempra’s Port Arthur project.