Yahoo Finance China’s Geely Confirms Saudi Aramco to Buy 10% Stake in Renault JV
(Bloomberg) -- Saudi Aramco will take a 10% stake in an automotive joint venture with France’s Renault SA and China’s Zhejiang Geely Holding Group Co., a smaller commitment than originally signaled by the world’s biggest oil company.
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The transaction values Horse Powertrain Ltd. at €7.4 billion ($7.93 billion), with Renault and Geely each retaining 45% stakes, the Chinese automaker said on Friday, confirming a previous report by Bloomberg News.
The three companies announced plans last year to make combustion engines and hybrid powertrains through a joint venture. Saudi Aramco said at the time that it planned to own as much as 20% of the venture.
The deal is a key plank in Renault Chief Executive Officer Luca de Meo’s overhaul of the French car manufacturer. Horse, officially created in May, has 17 plants and about 19,000 employees, with capacity to supply more than 5 million internal combustion, hybrid and plug-in hybrid engines annually. It’s expected to have €15 billion in annual revenue.
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