An Abu Dhabi private equity fund is set to acquire the automotive division of McLaren, the iconic British supercar manufacturer, in a bid to reshape the ownership of one of the UK’s most iconic car brands.
The deal follows a difficult period for the Woking-based company, which posted a record annual loss of £924 million in 2023, up from £349 million last year. Under the deal, McLaren’s long-time majority shareholder, Bahraini state-owned investment vehicle Mumtalakat, will continue to control the race, while Abu Dhabi’s CYVN Holdings – backed by the multibillion-dollar Abu Dhabi Investment Authority – is stepping in as a shareholder. a few.
The signing ceremony was reportedly witnessed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the prince of Abu Dhabi and son of the UAE president Sheikh Mohamed bin Zayed Al Nahyan, emphasizing the strategic importance of the emirate’s acquisition. In a statement, Abu Dhabi described the move as a “defining moment” in CYVN’s plan to build a “leading, globally connected platform.”
Mumtalakat first acquired a majority stake in McLaren in 2007 and has invested repeatedly over the past few years to keep the automaker afloat. The business suffered greatly during the pandemic and faced mounting losses, prompting a private Bahraini investor to seek a buyer. Having already signed up Wall Street bankers JP Morgan, Mumtalakat has now found its exit strategy with CYVN investment.
Tom Molnar, chief executive of McLaren, emphasized the need for the company to focus on electrification, as the company races to develop its first fully electric car. The investment from Abu Dhabi could provide the necessary funds for extensive research and development and to secure McLaren’s position in a future driven by advanced technology and clean air systems.
Although McLaren’s racing division – founded in 1963 – will remain separate, the new deal is expected to protect the economy of the motoring business. It hopes that with stable funding from Abu Dhabi and the continued strategic involvement of Mumtalakat, McLaren can face the challenges of rising costs, supply chain pressures, and the evolving global market for luxury and high-performance cars.
