Saudi Arabia-headquartered global energy and chemicals firm Aramco has completed the purchase of a 10% equity stake in UK-headquartered Horse Powertrain, a global leader in hybrid and internal combustion powertrain solutions, through a directly and wholly owned subsidiary, Aramco Asia Singapore.

The transaction builds on Aramco’s efforts to develop new mobility solutions with the potential to reduce transport emissions.

The transaction’s completion follows the signing of definitive agreements on June 28. Aramco’s investment is based on a €7.4 billion (US$7.78 billion) enterprise valuation of Horse Powertrain, in which Renault Group and Geely (through Geely Holding and Geely Auto) each retain a 45% stake.

Aramco's investment is expected to accelerate Horse Powertrain’s efforts to develop next–generation internal combustion engine (ICE) and hybrid powertrains, along with complementary technologies like alternative fuel and hydrogen solutions.

As part of the transaction, Aramco and affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in ICE technology, fuels and lubricants. Thanks to its technology leadership, global manufacturing and economies of scale, Horse Powertrain, the companies say, will further solidify its value proposition to automotive and transportation groups worldwide.

Horse Powertrain, it adds, aims to become a peerless partner for accessible cutting-edge hybrid and ICE powertrain solutions, helping to reduce global vehicle emissions.

“Our investment in Horse Powertrain builds on our considerable research and development in this field,” says Ahmad O. Al Khowaiter, Aramco’s executive vice-president of technology and innovation. In joining forces with two of the world’s leading carmakers, we aim to leverage our collective knowhow to take lower-emission mobility solutions forward.”