Aramco Acquires 10% Share in Horse Powertrain: Driving Global Emission Reduction Initiatives
Aramco, a global leader in integrated energy and chemicals, has acquired Horse Powertrain, a renowned provider of hybrid and internal combustion solutions. This acquisition underscores Aramco's commitment to pioneering new mobility solutions that aim to reduce transport emissions.
The acquisition was finalised following the execution of definitive agreements on 28 June 2024 and after securing all necessary regulatory approvals. With an enterprise valuation of €7.4 billion, Horse Powertrain continues to be co-owned by the Renault Group and Geely, each maintaining a 45% stake through Geely Holding and Geely Auto.
Ahmad O. Al Khowaiter, Aramco’s Executive Vice President of Technology & Innovation, remarked, "Addressing transport emissions effectively demands a multitude of strategies that reflect the varied nature of the global vehicle fleet, significant differences in transport infrastructures, and the specific requirements of motorists worldwide. Aramco is vigorously pursuing innovative solutions, from developing lower-carbon synthetic fuels to enhancing the efficiency of internal combustion engines. Our investment in Horse Powertrain illustrates our significant R&D endeavours in this area. By partnering with world-leading car manufacturers, we aim to propel forward lower-emission mobility solutions."
Matias Giannini, CEO of Horse Powertrain, expressed his delight regarding the partnership: "Aramco's esteemed expertise in alternative and synthetic fuels makes them the perfect partner for us to advance low-emission powertrain solutions. This partnership will further bolster our technology leadership and augment our value as a vital partner to global automotive brands."
Jamal Muashsher, CEO of Valvoline Global Operations, also shared his thoughts on the collaboration: "With over 150 years of innovation in automotive technology, Valvoline Global is excited to contribute its expertise to this partnership. Together with Horse Powertrain and Aramco, we are dedicated to advancing future-ready solutions in ICE technology, fuels, and lubricants, continuing our strong legacy in OEM partnerships and shaping the future of mobility."
Aramco's investment is poised to accelerate Horse Powertrain's development of next-generation ICE and hybrid powertrains alongside complementary technologies such as alternative fuels and hydrogen solutions. As part of this transaction, Aramco and Valvoline Global Operations will collaborate closely with Horse Powertrain to innovate in ICE technology, fuels, and lubricants. By leveraging its technology leadership and global manufacturing capabilities, Horse Powertrain aims to fortify its market position and become the unrivalled partner in providing cutting-edge hybrid and ICE powertrain solutions, significantly contributing to reducing global vehicle emissions.
The Board of Directors at Horse Powertrain now comprises seven members, with balanced leadership from Geely, Renault Group, and Aramco. This ensures a diverse and experienced governance structure poised to steer strategic growth and innovation.