A&O Shearman advises Aramco on its investment in HORSE Powertrain Limited, a JV established by Renault Group and Geely

Aramco will acquire the equity interest in equal parts from Renault Group and Geely, which will each retain a 45% equity stake. The price to be paid by Aramco at closing, subject to closing conditions including the receipt of regulatory approvals, will be based on a EUR7.4 billion enterprise valuation. 

The ‘HORSE Powertrain’ JV will design, develop, produce and sell hybrid and combustion powertrain solutions and systems with state-of-the-art technologies. The business has 17 global plants with a strategic footprint in China, Europe and Latin America and is expected to generate approximately EUR15 billion in annual revenue. 

A&O Shearman partner Andrew Schoorlemmer who led on the deal said: “Testament to our relationship with Aramco and our global coverage, we were able to mobilize a multi-specialist cross-border team to assist Aramco with this strategic investment. We are delighted to have been able to support the excellent leadership of the Aramco Law Organization and wider team to ensure the delivery of a complex deal in a compressed timeframe.” 

The A&O Shearman team was led by Aramco relationship partner, Andrew Schoorlemmer, and included partner Frédéric Moreau and senior associate Sam Brooks. Other senior members of the team were partner Judith Kim and senior associate Adam Reda who led on the long-term product supply agreements and Aramco relationship partner Filip Van Elsen and senior associate Sarah De Wulf who led on the R&D and IP arrangements.