Aramco, a global leader in integrated energy and chemicals, has acquired a 10% equity stake in Horse Powertrain through its wholly owned subsidiary, Aramco Asia Singapore Pte. Ltd. This strategic investment reinforces Aramco’s commitment to developing innovative mobility solutions aimed at reducing transportation emissions.
The transaction, based on a €7.4 billion enterprise valuation of Horse Powertrain, follows the signing of definitive agreements on June 28, 2024, and the receipt of all required regulatory approvals. Renault Group and Geely (via Geely Holding and Geely Auto) each retain a 45% stake in the company.
Aramco’s investment is expected to accelerate Horse Powertrain’s development of next-generation internal combustion engine (ICE) and hybrid powertrains, along with advanced technologies such as alternative fuels and hydrogen solutions. The collaboration will also involve Aramco and its affiliate Valvoline Global Operations working with Horse Powertrain to drive innovations in ICE technology, fuels, and lubricants.
With its technological expertise, global manufacturing capabilities, and economies of scale, Horse Powertrain aims to strengthen its position as a leading partner for cutting-edge hybrid and ICE solutions. The company remains dedicated to reducing global vehicle emissions while delivering value to automotive and transportation sectors worldwide.
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 low-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.”
