Saudi Aramco has acquired a 10 per cent stake in Horse Powertrain as part of its efforts to accelerate the development of green and sustainable mobility.
The deal is based on a €7.4 billion ($7.8 billion) valuation of the provider of hybrid and internal combustion powertrain solutions jointly owned by Renault Group and Geely, with each retaining a 45 per cent stake. It followed definitive agreements signed in June and regulatory approvals secured, Aramco said in a statement on Monday.
The world's largest oil-producing company, headquartered in Dhahran, has completed the acquisition through its wholly owned subsidiary, Aramco Asia Singapore.
The partnership aims to accelerate research in next-generation powertrain technologies, including synthetic fuels, hydrogen and advanced hybrid solutions, as part of efforts to reduce transport emissions.
chief executive, Horse Powertrain
Aramco is currently pursuing various solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, said Ahmad Khowaiter, the company’s executive vice president of technology and innovation.
“Our investment in Horse Powertrain builds on our considerable R&D in this field … we aim to leverage our collective know-how to take lower-emission mobility solutions forward,” Mr Khowaiter said.
Aramco’s investment is expected to boost Horse Powertrain’s efforts to develop internal combustion engines and hybrid powertrains, along with complementary technologies like alternative fuel and hydrogen solutions.
Aramco, which aims to achieve net-zero Scope 1 and Scope 2 emissions by 2050, is working on the development of sustainable fuels and is signing partnerships to help reduce transport emissions.
In 2022, it signed an agreement with Formula One’s Aston Martin for the development of internal combustion engines, sustainable fuels and advanced lubricants to lower emissions in racing cars.
The company is also strengthening its portfolio and finances. In October, it announced the completion of a $3 billion international sukuk issuance, comprising two US dollar-denominated tranches.
As part of the latest agreement, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in combustion engine technology, fuels and lubricants.
“Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions,” Matias Giannini, chief executive of Horse Powertrain, said.
Established in May, the UK-based Horse Powertrain focuses on providing low-emission powertrain solutions, including hybrid and combustion-based systems. These components play a crucial role in transferring energy from the engine to propel vehicles efficiently.
Its operational footprint spans 17 manufacturing plants and five dedicated research and development centres worldwide. Serving 10 industrial customers across 130 countries, including major vehicle manufacturers, the company focuses on key markets such as China, Europe and Latin America.
With an anticipated production capacity of about five million powertrain units annually, Horse Powertrain delivers solutions for all types of powertrains, including full hybrids, long-range plug-in hybrids and internal combustion engines.
