Geely and Renault will own around 45 percent each of the powertrain venture, called Horse Powertrain LONDON: Saudi Aramco will buy a 10 percent stake in a thermal engines joint venture between French carmaker Renault and Chinese automaker Geely, the companies said on Friday, valuing the business at €7.40 billion ($7.93 billion). Geely and Renault will own around 45 percent each of the powertrain venture, called Horse Powertrain, which will supply gasoline engines, hybrid systems and gearboxes for thermal vehicles. Renault CEO Luca de Meo described the deal in a statement as creating a “dream team” that would “reinvent” the future of combustion-engine and hybrid technologies. “Aramco’s stake in the thermal engine joint venture could stabilize investments in legacy automakers, providing a safety net amidst the electric shift,” investor platform Finimize wrote, ahead of the official announcement. “Aramco’s investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal combustion engines globally, Ahmad O. Al-Khowaiter, Aramco executive vice president of technology and innovation, said. “With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies. “With a strong emphasis on innovation, our goal is to provide solutions that can help reduce transport greenhouse gas emissions while meeting the needs of both vehicle manufacturers and motorists. In securing long-term partnership between Valvoline Global and Horse Powertrain Limited, Renault Group, and Geely in connection with this investment, we are also demonstrating Aramco’s ability to both create and capture value at the global level,” he added. Aramco, which this month raised around $11.2 billion through a secondary share sale, had originally signalled it would buy a 20 percent stake in Horse Powertrain. The company signed a letter of intent in March 2023 with a view to possibly becoming a minority shareholder in the venture. Horse Powertrain was formally established on May 31. “I am delighted that Aramco has joined Horse Powertrain Limited. Their expertise in fuels and hydrogen makes them a great partner for us to deliver cutting-edge, lower-emission powertrain solutions, driving our industry’s carbon mitigation efforts forward. Together, we will set new benchmarks for innovation in the automotive sector,” CEO Matias Giannini said. * With Reuters