Aramco Acquires 10% Stake in HORSE Powertrain
HORSE Powertrain Limited is headquartered in London and was established by Renault Group and Geely on May 31st, 2024.
The Saudi Arabian oil giant Aramco has announced its acquisition of a 10% equity interest in HORSE Powertrain Limited, a newly established global powerhouse in powertrain solutions. HORSE Powertrain Limited is headquartered in London and was established by Renault Group and Geely on May 31st, 2024.[1]
Aramco will purchase this stake from Renault Group and Geely, with each retaining 45% equity. The acquisition, pending regulatory approvals, values HORSE Powertrain at €7.4 billion.
The collaboration includes plans for joint technological advancements with the American retail automotive services Valvoline, focusing on enhancing internal combustion engine (ICE) performance and exploring alternative fuels.
HORSE Powertrain Limited, with 17 global plants and a presence in key markets like China, Europe, and Latin America, aims to produce approximately 5 million powertrain units annually.
Earlier this month, Saudi Aramco's highly anticipated $12 billion share sale witnessed a surge in demand with all shares being snapped up mere hours after the deal opened.
The price of one share ranged between SAR 26.70 ($7.12) and SAR 29 ($7.73).
The offering coincides with OPEC+'s decision to extend production cuts into 2025.
During Aramco's 2019 IPO, global investors mainly balked at valuation estimates, leaving the government reliant on domestic buyers. The $29.4 billion IPO received $106 billion in orders, with international purchasers receiving approximately 23% of the shares.
In May, Saudi Arabia announced that it was planning a multi-billion-dollar share sale in the energy giant Aramco.