Bahrain's sovereign wealth fund, Mumtalakat, has acquired complete ownership of the McLaren Group, renowned for producing high-performance sports cars and holding a significant share in the McLaren Formula 1 team. Mumtalakat, which was previously the largest shareholder in McLaren, has now assumed full control of the British company. The transaction signifies a significant development amid financial challenges that McLaren has faced recently.
The acquisition by Mumtalakat marks a notable shift in ownership structure for McLaren, signaling the fund's strengthened commitment to the company's future. McLaren has encountered financial difficulties in recent times, and the move to full ownership by Mumtalakat is viewed as a crucial step in stabilizing the organization. McLaren has expressed optimism about the acquisition, considering it a significant milestone for the company.
Following the completion of the acquisition, McLaren is exploring potential collaborations with other entities to advance its technological capabilities, particularly in the realm of electric vehicle technology. This strategic move aligns with McLaren's vision to innovate and adapt to evolving market trends, positioning the company for sustained growth and competitiveness in the automotive industry.
"We are delighted at Mumtalakat's continued commitment to McLaren through this deal," McLaren Group's executive chairman Paul Walsh said in a statement.
"This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, while continuing to explore potential technical partnerships with industry partners."
The McLaren Group, headquartered in Woking, Surrey, is the parent company of McLaren Automotive, a prominent player in the luxury sports car market for over a decade and a half. Its offerings rival those of renowned brands like Ferrari and Porsche, reflecting its stature in the industry.
Additionally, the McLaren Group holds a controlling interest in McLaren Racing, which operates the McLaren Formula 1 team and competes in various motorsport series including the US IndyCar, Formula E, and Extreme E. This diversified portfolio underscores McLaren's presence across multiple racing platforms.
However, the company faced financial challenges exacerbated by the COVID-19 pandemic, which prompted production halts and racing event cancellations globally. Subsequently, McLaren underwent a significant restructuring in 2020, resulting in substantial job losses as part of its efforts to adapt to the new economic landscape.
Furthermore, McLaren encountered hurdles related to supply chain disruptions, particularly a shortage of computer chips, which affected its ability to meet production demands. Complications with its Artura hybrid sports car further compounded the situation, leading to production suspensions and delivery delays.
In its latest financial report for the first nine months of the previous year, McLaren recorded a significant pre-tax loss of £276 million, reflecting the persistent challenges faced by the company in the wake of the pandemic.
Despite these setbacks, Mumtalakat, an investor in McLaren since 2007, opted to increase its ownership stake to full control, initially agreed upon last year. This move aims to bolster McLaren's financial stability and simplify its shareholder structure, potentially facilitating future partnerships and strategic collaborations to drive innovation and expansion, particularly in the realm of electric vehicle development.
Source: BBC
