China’s Geely bringing Saudi Aramco into joint venture with Renault to build gasoline, hybrid, alternative-fuel engines
- Saudi Aramco intends to acquire a minority stake in an existing joint venture set up by Geely and Renault, according to an exchange filing
- The investment will support research and development across synthetic fuels and next-generation hydrogen technologies, the companies say
China’s Geely Automobile Holdings and Renault SA have moved one step closer to finalising a deal to bring Saudi Arabia’s national oil producer on board as a partner in a venture to develop car engines based on gasoline, alternative fuels and hybrid technologies.
“Saudi Aramco’s investment would support research and development across synthetic fuels and next-generation hydrogen technologies,” Renault and Geely said in a joint announcement released on Renault’s official website.
Geely and Renault will hold equal equity stakes in the as-yet-unnamed joint venture upon the deal’s completion, the companies said, providing no further details.
Saudi Aramco was in discussions to take a stake of up to 20 per cent in the Geely-Renault power-train firm, according to a Reuters’ report in January, citing people familiar with the matter.
“This letter of intent represents a new milestone in our ongoing commitment to transportation technologies, and presents a platform to support Aramco’s research and development in engine innovation,” said Mohammed Y. Al Qahtani, Aramco executive vice-president of downstream.