Aramco Completes 10% Stake Acquisition in Horse Powertrain

Saudi Aramco, through its wholly owned subsidiary Aramco Asia Singapore Pte. Ltd., has completed the acquisition of a 10% equity stake in Horse Powertrain Limited, a global leader in hybrid and internal combustion engine (ICE) powertrain solutions. The transaction, finalized on December 2, 2024, follows the signing of definitive agreements on June 28, 2024, and the receipt of all necessary regulatory approvals. The investment is based on a €7.4 billion enterprise valuation for Horse Powertrain, with Renault Group and Geely (through Geely Holding and Geely Auto) each retaining a 45% stake.

Context and Background

This strategic investment underscores Aramco’s commitment to advancing mobility solutions that address the challenge of reducing transport emissions on a global scale. The global vehicle fleet is diverse, with varying infrastructures and motorist needs across countries, making a multi-pronged approach essential. Aramco’s move into Horse Powertrain builds on its extensive research and development in lower-carbon synthetic fuels and more efficient internal combustion engines, positioning the company at the forefront of innovative powertrain technology.

Key Details

Aramco Executive Vice President of Technology & Innovation Ahmad O. Al Khowaiter emphasized the importance of a broad strategy: “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.” He noted that Aramco is pursuing several potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines. The partnership with Renault Group and Geely is expected to accelerate Horse Powertrain’s development of next-generation ICE, hybrid powertrains, and complementary technologies like alternative fuel and hydrogen solutions.

Horse Powertrain CEO Matias Giannini welcomed the investment, stating: “Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions.” The company boasts 17 global plants, ten industrial customers in 130 countries, five R&D centers, 19,000 employees, and a strategic footprint spanning China, Europe, and Latin America, with an expected five million powertrain units per year.

International Impact and Collaboration

The transaction also brings in Valvoline Global Operations as a technical partner and supplier. Jamal Muashsher, CEO of Valvoline Global Operations, said: “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.” This collaboration aims to solidify Horse Powertrain’s value proposition to automotive and transportation groups worldwide. The Board of Directors of Horse Powertrain now includes seven members, with representation from Geely, Renault Group, and Aramco, ensuring robust governance and strategic alignment.

Vision 2030 Alignment

Aramco’s investment in Horse Powertrain directly supports Saudi Arabia’s Vision 2030 goals by fostering innovation in sustainable mobility and reducing carbon emissions, aligning with the Kingdom’s commitment to global environmental stewardship. By leveraging partnerships with two of the world’s leading carmakers, Aramco is contributing to lower-emission mobility solutions while strengthening its role as a key player in the global energy transition. This forward-looking approach positions Saudi Arabia at the forefront of developing accessible, cutting-edge powertrain solutions that can help reduce vehicle emissions worldwide, supporting a more sustainable future.

20 Questions

Q1. What is the main announcement from Aramco?

A1. Aramco has completed the acquisition of a 10% equity stake in Horse Powertrain Limited, a global leader in hybrid and internal combustion engine powertrain solutions, through its subsidiary Aramco Asia Singapore Pte. Ltd.

Q2. When was the transaction finalized?

A2. The transaction was finalized on December 2, 2024, following the signing of definitive agreements on June 28, 2024, and receipt of all necessary regulatory approvals.

Q3. What is the enterprise valuation of Horse Powertrain?

A3. Aramco’s investment is based on a €7.4 billion enterprise valuation for Horse Powertrain, highlighting the significant value of the company in the powertrain solutions market.

Q4. Who are the other stakeholders in Horse Powertrain?

A4. Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake in Horse Powertrain, maintaining their strong ownership positions.

Q5. How does this investment align with Aramco’s strategy?

A5. The investment builds on Aramco’s extensive research and development in lower-carbon synthetic fuels and more efficient internal combustion engines, advancing new mobility solutions to reduce transport emissions.

Q6. What did Aramco’s Executive VP say about this transaction?

A6. Ahmad O. Al Khowaiter said addressing transport emissions requires a wide range of approaches, and Aramco is pursuing innovative solutions, with this investment building on considerable R&D in the field.

Q7. What are some of the technologies Horse Powertrain works on?

A7. Horse Powertrain develops full hybrids, long-range plug-in hybrids, and internal combustion engines using alternative fuels such as ethanol, methanol, LPG, CNG, and hydrogen.

Q8. What is the global footprint of Horse Powertrain?

A8. Horse Powertrain has 17 global plants, ten industrial customers in 130 countries, five R&D centers, and 19,000 employees, with a focus on China, Europe, and Latin America.

Q9. How many powertrain units does Horse Powertrain expect to produce annually?

A9. Horse Powertrain expects to produce five million powertrain units per year, showcasing its significant manufacturing scale.

Q10. Who is the CEO of Horse Powertrain?

A10. The CEO of Horse Powertrain is Matias Giannini, who expressed delight at the closing of Aramco’s investment and highlighted Aramco’s expertise as ideal for delivering lower-emission powertrain solutions.

Q11. What is the role of Valvoline Global Operations in this partnership?

A11. Valvoline Global Operations is a technical partner and supplier, bringing over 150 years of automotive expertise to advance future-ready solutions in engine technology, fuels, and lubricants.

Q12. Who is the CEO of Valvoline Global Operations?

A12. The CEO of Valvoline Global Operations is Jamal Muashsher, who emphasized the company’s history of innovation and collaboration with original equipment manufacturers.

Q13. How is the Board of Directors of Horse Powertrain structured?

A13. The Board has seven members: three from Geely, three from Renault Group, and one from Aramco, ensuring balanced governance and strategic direction.

Q14. Who from Aramco serves on the Board of Horse Powertrain?

A14. Ali A. Al Meshari, Aramco’s Senior Vice President of Technology Oversight & Coordination, serves as the one director from Aramco on the Horse Powertrain Board.

Q15. What is the significance of this investment for Saudi Arabia’s Vision 2030?

A15. This investment supports Vision 2030 by fostering innovation in sustainable mobility and reducing carbon emissions, aligning with the Kingdom’s commitment to global environmental stewardship.

Q16. How does this partnership help reduce vehicle emissions?

A16. By developing next-generation internal combustion engines, hybrid powertrains, and alternative fuel solutions, the partnership aims to lower emissions across the global vehicle fleet.

Q17. What types of vehicles will benefit from Horse Powertrain’s solutions?

A17. All types of vehicles can benefit, including those using full hybrids, plug-in hybrids, and internal combustion engines running on alternative fuels like hydrogen or ethanol.

Q18. Is this investment part of a larger trend in the automotive industry?

A18. Yes, it reflects the industry’s move toward diversified, lower-emission mobility solutions, with major players collaborating to innovate in powertrain technology.

A19. Horse Powertrain aims to become a peerless partner for accessible, cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions through technology leadership and economies of scale.

Q20. How does this collaboration between Aramco, Renault, and Geely benefit global customers?

A20. It combines the expertise of an energy giant with two leading carmakers to deliver innovative, scalable powertrain solutions, providing customers worldwide with more sustainable mobility options.

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