Saudi Aramco has finalized agreements to acquire a 10% ownership stake in Horse Powertrain Ltd for a total value of 7.4 billion euros. Renault Group and Geely Group will maintain a 45% ownership stake each.
The investment by Saudi Aramco will bolster the growth of Horse Powertrain Ltd, aiding in the advancement of internal combustion transmission systems and synthetic fuel solutions.
Horse Powertrain Ltd is anticipated to produce up to 5 million powertrain units annually, encompassing a comprehensive array of advanced transmission technologies for partners worldwide.
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Through a wholly-owned subsidiary, Saudi Aramco has signed the definitive agreements for the 10% stake in the powertrain solution specialist Horse Powertrain Ltd, alongside Renault Group and Zhejiang Geely Holding Group, and Geely Automobile Holdings. Horse Powertrain Ltd was founded in late May 2024 by Geely Group and Renault Group and is headquartered in London, United Kingdom.
The stake acquisition by Saudi Aramco in Horse Powertrain Ltd will be for a 10% share, with Renault and Geely Groups holding an equal 45% stake each. The acquisition price by Saudi Aramco, subject to customary closing conditions including regulatory approvals, will be based on the full company valuation of 7.4 billion euros.
Aramco’s investment targets bolstering its contribution to the global energy transformation by developing and marketing more efficient mobility solutions. The agreements also encompass collaborative measures between Aramco and Valvoline in the areas of technology, fuels, and lubricants to enhance the performance of internal combustion engines produced by Horse Powertrain Ltd collectively.
Together, Saudi Aramco, Renault Group, and Geely Group aim to support an orderly energy and mobility transition worldwide. They share a vision that a combination of technologies will be necessary to reduce automotive carbon emissions, including highly efficient internal combustion engines, transmissions, hybrid engines, alternative fuels such as low-carbon synthetic fuel and hydrogen, as well as electric vehicles.
Horse Powertrain Ltd’s mission is to lead the race towards next-generation, low-emission technologies. Saudi Aramco’s outstanding capabilities, including a global network of research and development centers, will conduct research on synthetic fuel and hydrogen, enhance internal combustion engines, and facilitate the development of low-carbon and more sustainable solutions.
Ahmed Al-Khowaiter, Aramco’s Chief Technology Officer, said, “Saudi Aramco’s investment is expected to directly contribute to the development and utilization of cost-effective, efficient, and low-carbon-emitting internal combustion engines globally. In partnership with Geely and Renault, we plan to leverage our expertise and resources to support exceptional progress in engine and fuel technologies.”
He added, “With a strong focus on innovation, our goal is to provide solutions that can reduce greenhouse gas emissions from transportation while meeting the needs of both vehicle manufacturers and drivers. This investment solidifies a long-term partnership between Valvoline, Horse Powertrain Ltd, Renault Group, and Geely Group, showcasing Aramco’s ability to create and leverage value on a global scale.”
Luca de Meo, CEO of Renault Group, noted that reducing carbon emissions from the automotive industry is not a solitary process but requires the combined efforts of the best in the field to innovate and forge new paths. Daniel Li, CEO of Geely Holding Group, echoed the sentiment, emphasizing the need for global collaboration, multifaceted technical solutions, and shared expertise. With Aramco’s support and fuel technology expertise, Horse Powertrain Ltd is poised to strengthen its leadership in low-carbon and carbon-free fuel technology solutions such as methanol and hydrogen.
Matthias Jenni, CEO of Horse Powertrain Ltd, welcomed Aramco’s addition, noting Aramco’s expertise in fuel and hydrogen as an ideal partnership for advancing low-emission transmission solutions, thereby bolstering efforts to reduce carbon emissions in the industry and propel it forward. Together, they aim to set new standards for innovation in the automotive sector.
Horse Powertrain Ltd operates 17 factories worldwide, has industrial clients in 130 countries, including automakers, operates 5 research and development centers, employs nearly 19,000 individuals, and has a strategic presence focusing on China, Europe, and Latin America. With an expected annual production of 5 million powertrain units, the company covers all types of transmission solutions, including full hybrid engines, long-range plug-in hybrids, and internal combustion engines that use alternative fuels such as ethanol, methanol, liquefied natural gas, compressed natural gas, hydrogen, and more.
