Aramco Asia Singapore Pte Ltd. signed a definitive agreement to acquire 5% stake in Horse Powertrain Limited from Geely Automobile Holdings Limited (SEHK:175) on June 28, 2024. As a part of acquisition, 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, will be based on a ?7.4 billion enterprise valuation. 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).

The transaction is subject to customary closing conditions including the receipt of regulatory approvals. The investment will enhance Aramco?s contribution to the global energy transition through the development and commercialization of more sustainable mobility solutions. The investment by Aramco will support the growth of HORSE Powertrain limited and contribute to the development of competitive powertrains and synthetic fuel solutions. HORSE Powertrain Limited is expected to have an annual production of five million powertrain units, encompassing a complete portfolio of advanced powertrain technologies for partners around the world. The transaction is expected to close by the end of 2024.

Victor Gelli Cavalcanti of Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados acted as legal advisors to Aramco Asia Singapore Pte Ltd. A&O Shearman coordinated the transaction. EY Saudi Arabia acted as financial advisor to Aramco Asia Singapore Pte Ltd.

Aramco Asia Singapore Pte Ltd. completed the acquisition of 5% stake in Horse Powertrain Limited from Geely Automobile Holdings Limited (SEHK:175) on December 2, 2024. The transaction?s completion follows the receipt of all applicable regulatory approvals.