Aramco Asia Singapore, a directly and wholly owned subsidiary of Saudi Aramco, has completed the purchase of a 10 percent equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions.
The transaction builds on Aramco’s efforts to develop new mobility solutions with the potential to reduce transport emissions. The transaction’s completion follows the signing of definitive agreements and receipt of all applicable regulatory approvals.
The transaction’s completion follows the signing of definitive agreements in June 2024, and receipt of all applicable regulatory approvals. Aramco’s investment is based on a €7.4 billion ($7.7 billion) enterprise valuation of Horse Powertrain, in which Renault Group and Geely, through Geely Holding and Geely Auto, each retain a 45 percent stake.
Ahmad O. Al Khowaiter EVP – Technology & Innovation, Aramco
“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. 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. 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.”
Matias Giannini, Chief Executive Officer of Horse Powertrain, said that, “We are delighted that Aramco has closed its investment in Horse Powertrain. 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.”
Aramco’s 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 transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants. Thanks to its technology leadership, global manufacturing and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide.
Horse Powertrain aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.
