The sportscar maker faced financial challenges during the Covid-19 pandemic, leading to production halts and job losses.
23 Mar 2024 | 2850 Views | By Autocar Professional Bureau
Bahrain's sovereign wealth fund, Mumtalakat, has assumed full control of McLaren Group, manufacturer of high-end sportscars and majority owner of the McLaren F1 team, BBC reported.
Executive Chairman Paul Walsh speaking on the announcement said “We are delighted at Mumtalakat’s continued commitment to McLaren through this deal, which strengthens ...
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Bahrain's sovereign wealth fund, Mumtalakat, has assumed full control of McLaren Group, manufacturer of high-end sportscars and majority owner of the McLaren F1 team, BBC reported.
Executive Chairman Paul Walsh speaking on the announcement said “We are delighted at Mumtalakat’s continued commitment to McLaren through this deal, which strengthens our ownership and governance structure. This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, whilst continuing to explore potential technical partnerships with industry partners.”
The company faced financial challenges during the Covid-19 pandemic, leading to production halts and job losses. Supply chain disruptions and issues with the new Artura hybrid sportscar further compounded its struggles, resulting in significant losses, reports BBC.
Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Mumtalakat, added “Today’s announcement crystallizes the next phase of the Company’s trajectory of growing its leadership position in the luxury super car and motorsports industries. This reorganisation and new simplified structure positions McLaren for success and opens up strategic avenues, which include exploring new partnerships to enhance the company’s growth over the coming years."
In the first nine months of last year - the most recent period for which figures are available - it made a pre-tax loss of GBP 276 million. Mumtalakat has been an investor in McLaren Group since 2007, when it bought a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh. Over time it increased that stake to 60%, while injecting hundreds of millions of pounds into the business. Mumtalakat's decision to take full ownership strengthens McLaren's financial position and simplifies its shareholder structure, facilitating future partnerships, as reported by BBC.
As part of this transition, Mumtalakat may consider selling a minority stake in McLaren Group to its chosen partner, further enhancing McLaren's capabilities and market presence.