Aramco, one of the world’s leading integrated energy and chemicals companies, has signed definitive agreements to acquire a 10% equity interest in HORSE Powertrain Limited, the new global powertrain solutions company, alongside Renault Group, Zhejiang Geely Holding Group and Geely Automobile Holdings Limited. HORSE Powertrain Limited was formed on 31 May 2024, by Renault Group and Geely and is incorporated and headquartered in London, UK.

Aramco will acquire a 10% equity interest in HORSE Powertrain Limited in equal parts from Renault Group and Geely, which will each retain 45% equity stakes. The price to be paid by Aramco at closing, which is subject to customary closing conditions including the receipt of regulatory approvals, will be based on a €7.4 billion enterprise valuation.

This investment will enhance Aramco’s contribution to the global energy transition through the development and commercialization of more sustainable mobility solutions. The agreements also include collaboration arrangements for Aramco and Valvoline on technologies, fuels, and lubricants to collectively improve the performance of HORSE Powertrain Limited internal combustion engines (ICE).

Aramco, Renault Group, and Geely share the view that successful decarbonization of the automotive industry will require a combination of various technologies — including highly efficient ICE, transmissions and hybrid powertrains, alternative fuels such as lower-carbon synthetic fuels and hydrogen, as well as vehicle electrification—to support an orderly energy and mobility transition around the world.

HORSE Powertrain Limited’s mission is to lead the race towards ultra-low emission next generation technologies, and Aramco’s capabilities, including a global network of R&D centers where research on synthetic fuels, hydrogen, and ICE optimization is conducted, will facilitate development of long-term sustainable and accessible decarbonized solutions.

Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally. With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies. With a strong emphasis on innovation, our goal is to provide solutions that can reduce transport emissions while meeting the needs of both vehicle manufacturers and motorists. In securing long-term partnership between Valvoline and HORSE Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level.

—Ahmad O. Khowaiter, Aramco Executive Vice President of Technology & Innovation