Aramco finalizes 10% acquisition in Horse Powertrain

Deal News | Dec 03, 2024 | PR Newswire Cision Aramco

In a notable development, Aramco has finalized its acquisition of a 10% stake in Horse Powertrain Limited, a leading provider of hybrid and internal combustion powertrain solutions. This transaction, based on an enterprise valuation of 7.4 billion euros, underscores a strategic partnership with Horse Powertrain owners, Geely and Renault, who retain a 45% stake each. The deal aims to capitalize on Aramco's expertise in alternative and synthetic fuels to advance low-emission mobility solutions. With 17 manufacturing plants and a significant global presence, Horse Powertrain aspires to become a leading Tier 1 powertrain supplier as it focuses on next-gen hybrid and ICE technologies. Executives from Aramco and Horse Powertrain emphasize the potential for enhanced collaboration and technological advancement within the mobility sector due to this strategic investment.

Sectors

  • Automotive
  • Energy
  • Private Equity

Geography

  • Saudi Arabia – Aramco, the main acquiring company, is based in Saudi Arabia.
  • United Kingdom – Horse Powertrain is based in the UK, making it a key geography in the transaction.
  • China – Geely, a major shareholder in Horse Powertrain, is based in China, and it represents a critical region in the powertrain sector's activity.

Industry

  • Automotive – The article discusses investments in powertrain technologies, directly related to the automotive sector.
  • Energy – Aramco's involvement highlights the energy sector's interests in alternative and synthetic fuels for reducing emissions.
  • Private Equity – Aramco's strategic financial investments and acquisitions are typical activities of major players in the private equity industry.

Financials

  • €7.4 billion – Enterprise valuation of Horse Powertrain for the 10% stake acquisition by Aramco.

Participants

NameRoleTypeDescription
AramcoAcquirerCompanyA global leader in integrated energy and chemicals, acquiring a 10% stake in Horse Powertrain.
Horse Powertrain LimitedTargetCompanyA global leader in hybrid and combustion powertrain solutions.
Renault GroupShareholderCompanyRetains a 45% stake in Horse Powertrain post-acquisition.
Geely Holding and Geely AutoShareholderCompanyRetains a 45% stake in Horse Powertrain, involved in automotive manufacturing.
Valvoline Global OperationsTechnical PartnerCompanyCollaborates with Horse Powertrain and Aramco on ICE technology advancements.
Ahmad O. Al KhowaiterExecutivePersonExecutive VP for Technology and Innovation at Aramco.
Matias GianniniExecutivePersonExecutive Director of Horse Powertrain.