Oil producer Saudi Aramco will buy a 10% stake in a thermal engines joint venture between French carmaker Renault and Chinese automaker Geely, the companies said on Friday, valuing the business at 7.40 billion euros ($7.93 billion).
The investment comes as the global electric-vehicle market struggles with worries around demand and rising production expenses © Mena Today
Oil producer Saudi Aramco will buy a 10% stake in a thermal engines joint venture between French carmaker Renault and Chinese automaker Geely, the companies said on Friday, valuing the business at 7.40 billion euros ($7.93 billion).
Geely and Renault will own around 45% each of the powertrain venture, called Horse Powertrain, which will supply gasoline engines, hybrid systems and gearboxes for thermal vehicles.
Reuters reported on Thursday that the state-owned company was close to buying a 10% stake in the venture. Renault CEO Luca de Meo described the deal in a statement as creating a "dream team" that would "reinvent" the future of combustion-engine and hybrid technologies.
"Aramco's stake in the thermal engine joint venture could stabilize investments in legacy automakers, providing a safety net amidst the electric shift," investor platform Finimize wrote, ahead of the official announcement.
The investment comes as the global electric-vehicle market struggles with worries around demand and rising production expenses.
The European Commission this month said it would impose extra duties of up to 38.1% on imported Chinese electric cars from July.
Aramco, which this month raised around $11.2 billion through a secondary share sale, had originally signalled it would buy a 20% stake in Horse Powertrain.
The company signed a letter of intent in March 2023 with a view to possibly becoming a minority shareholder in the venture.
Horse Powertrain was formally established on May 31.
($1 = 0.9334 euros)
Reporting by Rishav Chatterjee
Chinese Premier Li Qiang’s visit to Egypt marks a major diplomatic milestone in strengthening China-Egypt ties, said Chinese Ambassador to Egypt Liu Licheng in a statement issued Wednesday.
Saudi Arabia's Crown Prince Mohammed bin Salman met Iranian Foreign Minister Abbas Araqchi in Jeddah on Tuesday, in the first visit by the Iranian official to the Gulf kingdom since Tehran's air war with Israel.
Saudi Arabia and Indonesia signed several deals and memos of understanding worth around $27 billion between private sector institutions in several fields including clean energy and petrochemicals, the Saudi state news agency SPA reported on Wednesday.
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