#Saudi Arabia #Geely #Aramco #Horse Powertrain #Dhahran

Aramco's Strategic Acquisition of Horse Powertrain

In a significant development for the energy and automotive sectors, Aramco has finalized the acquisition of a 10% equity stake in Horse Powertrain Limited, a global leader in hybrid and internal combustion powertrain solutions. This acquisition, announced on December 2, 2024, follows the signing of definitive agreements on June 28, 2024. With an enterprise valuation of €7.4 billion, this strategic move not only cements Aramco's position in the evolving landscape of mobility solutions but also marks a collaborative effort aimed at advancing powertrain technologies and reducing transport emissions.

Key Players in the Deal

Renault Group and Zhejiang Geely Holding Group maintain significant stakes in Horse Powertrain, each holding 45%. This collaboration brings together three of the automotive industry's leading players, combining their expertise and resources to forge a path towards innovative solutions in powertrain technology. Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology Innovation, highlighted the necessity of diverse approaches in tackling transport emissions, stating, “At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines.”

Investment Goals and Strategic Focus

Aramco's investment emphasizes the company’s commitment to researching and developing lower-carbon mobility solutions. This strategic partnership is expected to support Horse Powertrain's goal of becoming a leading Tier 1 powertrain supplier, aiming to accelerate the energy transition while significantly contributing to reducing global transport emissions. Matias Giannini, CEO of Horse Powertrain, expressed excitement about the collaboration, noting, “Aramco's expertise in alternative and synthetic fuels makes it the ideal partner for us to deliver lower-emission powertrain solutions.”

Collaborative Initiatives and Innovations

The partnership will delve into advancements in internal combustion engine (ICE) technologies, including alternative fuel and hydrogen solutions. Aramco, alongside Valvoline Global Operations, will work with Horse Powertrain to innovate in fuels, lubricants, and technologies that will help enhance the efficiency and reduce the emissions of future powertrains. With Horse Powertrain's extensive global footprint, featuring 17 plants and five research and development centers, the partnership is poised to yield impactful results for the automotive and transportation sectors around the world.

A Modern Approach to Powertrain Solutions

According to Horse Powertrain's infrastructure, the company is set to produce around 5 million powertrain units annually, covering a wide array of solutions including full hybrids, long-range plug-in hybrids, and internal combustion engines utilizing alternative fuels like ethanol, methanol, and hydrogen. This comprehensive approach positions Horse Powertrain as a pivotal player in the automotive industry's move towards sustainability.

Board Composition and Strategic Vision

Following the investment, the Board of Directors for Horse Powertrain includes representatives from Aramco, Renault, and Geely, ensuring a robust governance structure that promises focused oversight and strategic direction for the company’s growth. With one director from Aramco, Ali A. Al Meshari, serving alongside six directors from Renault and Geely, this multi-faceted board reflects a commitment to collaboration and innovation.

Future Prospects

As the automotive industry navigates the complexities of energy transition and emission reductions, Aramco’s strategic investment in Horse Powertrain appears to be a timely and calculated move. By leveraging technological advancements and collaborative efforts, the companies involved aspire to lead the charge into a more sustainable and efficient future for transportation.

In conclusion, Aramco’s acquisition of a stake in Horse Powertrain not only fortifies its position as a leader in energy and chemicals but also exemplifies the potential of partnerships in driving innovations that could reshape mobility solutions for generations to come.