Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) inked definitive agreements to acquire a 10% stake in HORSE Powertrain Limited, the new global powertrain solutions company.

Aramco’s subsidiary pended the deals alongside Renault Group, Zhejiang Geely Holding Group, and Geely Automobile Holdings Limited, according to a press release.

Headquartered in London, HORSE Powertrain was established on 31 May 2024 by Renault Group and Geely.

Under the agreement, Aramco will acquire a 10% shareholding in HORSE Powertrain, while Renault Group and Geely will retain 45% equity stakes, each.

The price to be paid by Aramco at closing, which is subject to customary closing conditions and regulatory approvals, will be based on a EUR 7.40 billion enterprise valuation. 

Meanwhile, the investment aims to enhance Aramco’s contribution to the global energy transition through the development and commercialisation 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 (ICE).

Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “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,” Al Khowaiter highlighted.

He concluded: “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.”

Daniel Li, CEO of Geely Holding, commented: “Mitigating greenhouse gas emissions will require global synergies, multi-faceted technological solutions, and the sharing of expertise.”

“With Aramco’s support and expertise in fuel technologies, HORSE Powertrain Limited further cements its role as a leader in pioneering low-carbon and carbon-free fuel technology solutions such as methanol and hydrogen,” he added.

Saudi Aramco Power Company recently joined forces with Saudi Power Procurement Company (SPPC) and ACWA Power Company for three large-scale solar photovoltaic (PV) plants.