Abu Dhabi’s sovereign wealth fund is ready to amass the automotive division of McLaren, the famend British supercar producer, in a transfer that reshapes the possession of one of many UK’s most iconic motoring manufacturers.
The deal follows a troublesome interval for the Woking-based agency, which recorded a document annual lack of £924 million in 2023, up sharply from £349 million the earlier 12 months. Beneath the settlement, McLaren’s longtime majority shareholder, the Bahraini state-owned funding car Mumtalakat, will retain management of the racing arm, whereas Abu Dhabi’s CYVN Holdings – backed by the trillion-dollar Abu Dhabi Funding Authority – steps in as a minority shareholder.
The signing ceremony was reportedly witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, crown prince of Abu Dhabi and son of UAE president Sheikh Mohamed bin Zayed Al Nahyan, underscoring the strategic significance of the acquisition for the emirate. In an announcement, Abu Dhabi described the transfer as “a defining moment” in CYVN’s plan to construct a “leading, globally connected mobility platform.”
Mumtalakat first acquired a serious stake in McLaren in 2007 and has repeatedly injected funds over the previous few years to maintain the carmaker afloat. The enterprise suffered severely in the course of the pandemic and confronted mounting losses, which prompted Bahrain’s sovereign investor to hunt a purchaser. Having already enlisted Wall Road bankers from JP Morgan, Mumtalakat has now discovered its exit technique by means of CYVN’s funding.
Tom Molnar, chief government of McLaren, has emphasised the necessity for the agency to pivot in direction of electrification, with the corporate racing to develop its first absolutely electrical supercar. The funding from Abu Dhabi might present the capital required for in depth analysis and growth and to safe McLaren’s place in a future pushed by superior know-how and cleaner propulsion techniques.
Whereas the McLaren racing division – initially based in 1963 – will stay separate, the brand new deal is predicted to safe the automotive enterprise’s monetary footing. The hope is that with steady backing from Abu Dhabi and the persevering with strategic involvement of Mumtalakat, McLaren can navigate the challenges of rising prices, provide chain pressures, and an evolving international marketplace for luxurious and high-performance autos.
