Bahrain’s sovereign wealth fund has acquired full ownership of the McLaren Group, known for its production of high-end sportscars and a majority stake in the McLaren F1 team.
Mumtalakat, the Bahraini fund, was already the largest shareholder of McLaren.
This acquisition comes after a period of significant financial uncertainty for the British company, which has experienced substantial losses.
Describing the acquisition as a “major milestone,” McLaren highlighted its commitment to exploring technical partnerships with other companies to advance electric vehicle technology.
“We are delighted at Mumtalakat’s continued commitment to McLaren through this deal,” stated Paul Walsh, McLaren Group’s executive chairman. “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.”
Headquartered in Woking, Surrey, the McLaren Group comprises McLaren Automotive, a leading player in the market for luxury sportscars, competing with renowned brands like Ferrari and Porsche.
Additionally, it holds a majority stake in McLaren Racing, which encompasses the McLaren Formula 1 team, competing in various racing series worldwide.
Facing financial challenges exacerbated by the COVID-19 pandemic, McLaren underwent significant restructuring in 2020, resulting in workforce reductions and production suspensions.
Supply chain disruptions, particularly a shortage of computer chips, further impacted operations, along with issues related to its Artura hybrid sportscar, leading to production halts and delivery delays.
Mumtalakat has been an investor in McLaren Group since 2007, initially acquiring a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh. Over time, it increased its ownership to 60%, injecting substantial capital into the business.
The decision to assume full control initially agreed upon last year, strengthens McLaren’s financial position in the short term and simplifies its shareholder structure, potentially facilitating future partnerships.
McLaren aims to expand its product range, particularly focusing on electric vehicles and has reportedly engaged in discussions with companies like Polestar, owned by Geely, Hyundai, BMW, and Lucid Motors. Any potential partnership may involve Mumtalakat selling a minority stake in McLaren Group to the chosen partner.
