- Following the signing of definitive agreements on June 28, 2024, Aramco has completed its acquisition of a 10% equity stake in Horse Powertrain Limited (“Horse Powertrain”), based on an enterprise value of €7.4 billion
- Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% equity stake in Horse Powertrain
- The investment solidifies a key strategic partnership between Horse Powertrain and Aramco, leveraging their collective expertise and resources to pursue advances in powertrain technologies, synthetic fuels, and lubricants
- The partnership builds on Aramco’s research and development (R&D) efforts in lower-carbon mobility solutions, aims to contribute to transport emission reductions, and helps to pursue Horse Powertrain’s vision of becoming a consolidated powertrain Tier 1 supplier to accelerate the energy transition
Aramco, one of the world’s leading integrated energy and chemicals companies, through a directly and wholly owned subsidiary, Aramco Asia Singapore Pte. Ltd., has completed the purchase of a 10% equity stake in Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions. The transaction builds on Aramco’s efforts to develop new mobility solutions with the potential to reduce transport emissions.
The transaction’s completion follows the signing of definitive agreements on June 28, 2024, and receipt of all applicable regulatory approvals. Aramco’s investment is based on a €7.4 billion enterprise valuation of Horse Powertrain, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake.
Ahmad O. Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries. At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference. Our investment in Horse Powertrain builds on our considerable R&D in this field. In joining forces with two of the world’s leading carmakers, we aim to leverage our collective knowhow to take lower-emission mobility solutions forward.”
Matias Giannini, Chief Executive Officer of Horse Powertrain, said: “We are delighted that Aramco has closed its investment in Horse Powertrain. Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions. By strengthening our technology leadership with this partnership, Horse Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint.”
Jamal Muashsher, Chief Executive Officer of Valvoline Global Operations, said: “As a technical partner and supplier to Horse Powertrain, we look forward to applying Valvoline Global’s 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants. Our newest joint effort with Horse Powertrain and Aramco builds on Valvoline Global’s strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility.”
Aramco’s investment is expected to accelerate Horse Powertrain’s efforts to develop next generation ICE and hybrid powertrains, along with complementary technologies like alternative fuel and hydrogen solutions. As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels, and lubricants. Thanks to its technology leadership, global manufacturing and economies of scale, Horse Powertrain will further solidify its value proposition to automotive and transportation groups worldwide. Horse Powertrain aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.
The Board of Directors of Horse Powertrain is now composed of seven members:
- Three directors from Geely: Daniel Donghui Li (Vice Chairman of Geely Auto and CEO, Geely Holding) will become Chairman of the Board, Jerry Gan (CEO, Geely Auto Group) and Andy An (President, Geely Holding and Chairman, Geely Auto Group)
- Three directors from Renault Group: François Provost (Chief Procurement, Partnerships, and Public Affairs Officer at Renault Group), Thierry Charvet (Chief Industry and Quality Officer at Renault Group), and Denis Le Vot (CEO, Dacia and Chief Supply Chain Officer at Renault Group)
- One director from Aramco: Ali A. Al Meshari (Aramco Senior Vice President of Technology Oversight & Coordination)
Horse Powertrain factsheet:
- 17 global plants
- 10 industrial customers in 130 countries, including vehicle manufacturers
- Five R&D centers
- c. 19,000 employees
- Strategic footprint focused on China, Europe, and Latin America
- Expected c. 5 million powertrain units per year
- All types of powertrain solutions covered – full hybrids, long-range plug-in hybrids, and internal combustion engines that use alternative fuels such as ethanol, methanol, LNG, CNG, hydrogen, etc.