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

Aramco Completes Acquisition of Horse Powertrain Limited

On December 3, 2024, Saudi Aramco announced the finalization of its acquisition of a 10% stake in Horse Powertrain Limited, a global leader in hybrid and internal combustion engine (ICE) powertrain solutions. This acquisition, estimated at an enterprise value of €7.4 billion, strengthens Aramco's commitment to innovating and progressing in sustainable transportation technologies.

The agreements for this acquisition were signed on June 28, 2024, following the release of all necessary regulatory approvals. Alongside Aramco, Geely and Renault maintain 45% ownership stakes in Horse Powertrain, ensuring a solid consortium of automotive giants focused on reducing transport emissions.

Ahmad O. Al Khowaiter, Aramco's Executive Vice President of Technology and Innovation, commented, "Combatting transport emissions requires diverse approaches acknowledging the global automotive landscape and its varying infrastructure requirements. Our partnership with Horse Powertrain, bolstered by our robust R&D efforts, is a significant step toward low-emission mobility solutions."

Matias Giannini, CEO of Horse Powertrain, expressed enthusiasm about Aramco's investment. He noted that with Aramco's expertise in alternative and synthetic fuels, Horse Powertrain can enhance its technological leadership, presenting valuable powertrain solutions to automotive manufacturers worldwide.

In this partnership, Valvoline Global Operations, reiterating its long history in automotive innovation, aims to develop future-ready solutions in ICE technology, fuels, and lubricants in collaboration with Horse Powertrain and Aramco. Jamal Muashsher, CEO of Valvoline Global Operations, emphasized this collaborative endeavor's role in shaping the next generation of mobility.

The acquisition aligns with Aramco's aim to enhance Horse Powertrain's capabilities in future ICE and hybrid powertrains while exploring complementary technologies, including alternative fuels and hydrogen solutions. Horse Powertrain intends to further establish itself as a distinguished partner in providing advanced hybrid and ICE powertrain solutions, thereby actively participating in global emissions reduction efforts.

The board of Horse Powertrain now comprises seven members from Geely, Renault, and Aramco, ensuring a balanced governance structure guiding the joint innovation initiatives effectively.

Horse Powertrain Overview

Horse Powertrain, established as a leader in hybrid and combustion powertrain solutions, operates 17 manufacturing plants worldwide. The company employs approximately 19,000 people, serving 10 industrial clients across 130 countries. Horse Powertrain boasts five R&D centers, emphasizing its commitment to innovation and sustainable transportation.

With a strategic footprint in China, Europe, and Latin America, the company anticipates producing around 5 million powertrains per year. Horse Powertrain's offerings encompass a wide spectrum of powertrain solutions, including full hybrids, long-range plug-in hybrids, and ICEs that utilize alternative fuels such as ethanol, methanol, LPG, CNG, and hydrogen.

About Aramco

Saudi Aramco plays a crucial role in the energy sector, focusing on refining its resources to contribute significantly to global growth and sustainability. The company continuously seeks innovative energy solutions while maintaining its position as a leading integrated energy and chemical firm.

About Renault Group

The Renault Group is driving the transformation of mobility by emphasizing electrification and developing sustainable mobility solutions. With a presence in over 130 countries, it leverages its alliances to bolster sales and growth, with an eye on environmental objectives.

About Geely Holding

Zhejiang Geely Holding Group has established itself as a major player in the automotive industry, covering all segments from R&D to sales and after-sales services. The group continues to expand its global footprint and innovate through a wide range of recognized brands in the automotive field.