Dark
Light
Dark
Light
Bahrain Takes Full Control of McLaren Group

Bahrain Takes Full Control of McLaren Group

23/03/2024

The Bahrain sovereign wealth fund, Mumtalakat, has fully acquired the McLaren Group, marking a pivotal shift towards stability and innovation within the high-end sports car and Formula 1 racing sectors.

Mumtalakat, already the primary shareholder of McLaren, now moves to 100% ownership.

This deal follows a period of significant financial uncertainty for the British company, which reported substantial losses.

McLaren has hailed this as a “major milestone.”

The company is now considering technical partnerships with other businesses to aid in the development of electric vehicle technology.

“We are thrilled about Mumtalakat’s continued commitment to McLaren through this agreement,” said Paul Walsh, Executive Chairman of the McLaren Group, in a statement.

“This will further allow us to focus on achieving our long-term business plan, including investing in new products and technologies, while continuing to explore potential technical partnerships with industry partners.”

The McLaren Group is headquartered in Woking, Surrey. It owns McLaren Automotive, which in 14 years has become a key player in the high-end sports car market.

The group also holds a majority stake in McLaren Racing, which owns the McLaren Formula 1 team, and participates in the American IndyCar series, as well as the electric Formula E and Extreme E series.

The company has faced financial difficulties since the Covid pandemic, which initially forced it to halt car production and led to the cancellation of racing activities worldwide. It underwent a major restructuring in 2020, resulting in over 1,000 job losses.

It was later affected by widespread supply chain disruptions as economies restarted post-pandemic, notably by a shortage of computer chips. There were also issues with its new hybrid sports car, Artura, leading to a suspension of production and delays in deliveries.

In the first nine months of last year – the most recent period for which figures are available – the company recorded a pre-tax loss of 300 million euros.

Mumtalakat has been an investor in McLaren Group since 2007, when it purchased a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh. Over time, this stake was increased to 60%, while injecting hundreds of millions of euros into the company.

Its decision to take full control, initially agreed last year, bolsters McLaren’s short-term finances.

For the future in electric, according to our information, the Swedish company Polestar, owned by the Chinese group Geely, is among those that have had discussions with McLaren. Talks have also reportedly taken place with Hyundai, BMW, and the Californian electric brand Lucid Motors.

Any deal could involve Mumtalakat selling a minority stake in the McLaren Group to its chosen partner.

Bahrain Takes Full Control of McLaren Group. Bahrain Takes Full Control of McLaren Group

Newsletter

Go toTop