Saudi Aramco to Acquire 10% Stake in Geely-Renault's Powertrain Company
TapTechNews June 29th news, on June 28th, Saudi Arabian Oil Company (hereinafter referred to as Saudi Aramco) signed a final agreement with Renault Group, Zhejiang Geely Holding Group and Geely Automobile Holdings Ltd.'s jointly established powertrain technology company, HORSEPowertrainLimited, to acquire a 10% stake.
It is known that Saudi Aramco will purchase a 10% stake from Renault and Geely based on the overall enterprise value of 7.4 billion euros (TapTechNews note: currently about 57.694 billion yuan). At the same time, conventional closing conditions including obtaining regulatory approvals need to be met, while Renault Group and Geely will each retain the same 45% stake.
According to the introduction, this round of investment will promote Saudi Aramco's innovation and popularization in sustainable mobility solutions, and deepen its active role in promoting the global energy transition process. The agreement will also promote the strategic cooperation between Saudi Aramco and Valvoline with HORSEPowertrainLimited in the fields of technology, fuel and lubricants to jointly improve the performance of the joint venture company in the field of internal combustion engines (ICE), and explore an efficient and sustainable development path.
TapTechNews noticed that Geely Automobile and Renault Group signed a joint venture agreement last July, each holding 50% of the shares of the joint venture company. The new company is committed to becoming the leader of the next-generation efficient and energy-saving hybrid power system solutions to meet the global market demand.
In the announcement, Geely wrote that the establishment of the joint venture company will integrate the internal combustion engine, hybrid and plug-in hybrid engine and transmission businesses of this group (Geely Automobile Holdings Ltd.), Geely Holding Group and Renault Group. The new company will be jointly led by Geely and Renault Group, and the board members will be equally divided on both sides to jointly formulate and implement the company's development strategy.
In the initial stage of operation, the new company will ensure business continuity through two operation centers: Renault Group's operation center is located in Madrid, and Geely's operation center is located in Hangzhou Bay. In addition, the new company headquarters is planned to be located in the UK and a management team will be set up to integrate the operation, seek synergies, and determine the future development plan.