Saudi Aramco will take a 10 percent stake in the Horse powertrain joint venture with Renault and China’s Zhejiang Geely Holding, the companies said, a smaller commitment than originally signaled by the world’s biggest oil company.
The transaction is set to value Horse Powertrain at about €7.4 billion ($7.9 billion) with Renault and Geely keeping roughly 45 percent each, the companies said Friday in a news release.
The three companies announced plans last year to make combustion engines and hybrid powertrains through a joint venture. Saudi Aramco said then that it planned to own as much as 20 percent of the company.
Renault Group CEO Luca de Meo said on Friday that the deal would create a "dream team."
"Decarbonizing the automotive industry won’t be a solo play. It requires the best players to join forces to open new paths and come up with innovative solutions," de Meo said in a statement. "A dream team is born to reinvent the future of ICE and hybrid technologies."
Aramco is among energy providers and automakers doing research in synthetic fuels, which could -- if sustainably produced -- provide a low- or zero-emissions solution for existing and future combustion engines. The EU has pledged to create an as-yet-undefined exception for the fuels in its zero-emissions goals.
The agreements includes arrangements for Aramco and Valvoline on technologies, fuels and lubricants to improve the performance of Horse engines, the release said.
