Aramco, one of the world’s leading integrated energy and chemicals companies, through a wholly owned subsidiary signed definitive agreements to acquire a 10 percent equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited (Geely).
HORSE Powertrain Limited was formed on May 31, 2024, by Renault Group and Geely and is incorporated and headquartered in London, United Kingdom.
Aramco said in a statement that it will acquire a 10 percent equity interest in HORSE Powertrain Limited in equal parts from Renault Group and Geely, which will each retain 45 percent equity stakes.
The price to be paid by Aramco at closing, which is subject to customary closing conditions including the receipt of regulatory approvals, will be based on a $7.9 billion (€7.4 billion) enterprise valuation.
The investment aims to enhance Aramco’s contribution to the global energy transition through the development and commercialization of 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 Limited internal-combustion engines (ICEs).
Ahmad O. Al Khowaiter, Aramco’s executive vice president of technology and innovation, said that, “Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally. With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies.”
“With a strong emphasis on innovation, our goal is to provide solutions that can help reduce transport greenhouse gas emissions while meeting the needs of both vehicle manufacturers and motorists. In securing long-term partnership between Valvoline Global and HORSE Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level,” Al Khowaiter added.
