In a bid to secure McLaren's future, Bahrain's sovereign wealth fund, Mumtalakat, has flexed its financial muscle.
Having already held a significant stake in the automotive company, Mumtalakat has taken complete ownership of the McLaren Group, encompassing both their high-performance car manufacturing and majority ownership of the McLaren Formula 1 team.
This move comes after a tumultuous period for the British company. Struggling with mounting financial losses, McLaren desperately needed a lifeline.
McLaren, however, sees this as a positive step, calling it a "major milestone".
Looking ahead, the company is now reportedly exploring strategic partnerships with other players in the automotive industry, which suggests McLaren might be seeking expertise and resources to propel them into the electric vehicle (EV) market, a rapidly growing and crucial sector.
"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."
Bahrain's Mumtalakat first entered the scene in 2007, acquiring a 30% stake in McLaren Group from founding figures Ron Dennis and Mansour Ojjeh. This initial investment marked the beginning of a significant partnership.
While Mumtalakat has become the sole owner of the McLaren Group, the latter retains a majority (67%) stake in McLaren Racing, which includes the brand’s F1 venture as well as its IndyCar, Formula E, and Extreme E endeavors.
©McLaren
The past few years haven't been easy for McLaren. The COVID-19 pandemic forced a temporary halt to car production and disrupted global racing activities.
This financial strain necessitated a major restructuring in 2020, unfortunately leading to job losses.
As economies recovered, new challenges emerged, including global supply chain disruptions and a shortage of computer chips.
McLaren also encountered issues with their Artura hybrid launch, causing production delays. These factors combined resulted in a significant pre-tax loss of £276 million in the first nine months of 2023.
Despite these recent struggles, Mumtalakat's decision to take full ownership of McLaren Group in 2023 signifies a long-term commitment to the company's future.
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