By David Sachs


Saudi Arabia's national oil company will acquire a stake valued at 740 million euros in Horse, a joint venture between Geely and Renault aimed at developing cleaner car engines.

Saudi Arabian Oil Co., known as Aramco, signed an agreement to take a 10% stake in Horse Powertrains Limited, a company developing cleaner powertrains for hybrid and gas-burning vehicles. The Chinese and French carmakers will each keep 45% stakes.

The deal, which is subject to regulatory approval, is based on an enterprise valuation of EUR7.4 billion, the companies said in a joint statement.

"Aramco's investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally," said Ahmad Al Khowaiter, Aramco's vice president of technology and innovation.

The deal also includes partnership arrangements between Aramco and Valvoline to develop technology, fuel and lubricant to improve Horse engines.

With Horse, Aramco, Geely and Renault aim to develop decarbonization technology, including highly-efficient internal combustion engines, hybrid powertrains, and hydrogen and synthetic fuels.

Horse was formed on May 31 and expects to produce 500 million powertrain units a year, the company said.


Write to David Sachs at david.sachs@wsj.com


(END) Dow Jones Newswires

06-28-24 1322ET