Bahraini investment fund takes control of McLaren
26/03/2024 22:00
The state-owned company now has full ownership of McLaren, bringing financial stability to the troubled firm.
Sportscar company McLaren is now under the full control of a Bahraini state-owned investment fund.
The deal, made between the carmaker and the Mumtalakat Holding Company – which is the sovereign wealth fund of the Kingdom of Bahrain – means the investor has complete ownership of the McLaren Group, as well as a majority stake in the Formula One team.
"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 Group's executive chairman, Paul Walsh, said in a statement.
Although the fund was already McLaren's largest shareholder, the move has been hailed a major milestone following years of financial uncertainty for the firm.
In late 2022, Mumtalakat owned a 60 per cent stake in the McLaren Group and reportedly invested a further $US101 million in early 2023.
His Excellency Shaikh Abdulla bin Khalifa Al Khalifa, chief executive officer of Mumtalakat, added: "The completion of this process is a significant milestone that reflects our support for McLaren's continued innovation and long-term commitment to excellence."
McLaren has faced financial turmoil since the start of the COVID-19 pandemic, when it suspended production for a time, cancelled its racing activities and restructured – leading to the loss of more than 1000 jobs.
The brand first sold off its Surrey headquarters in April 2021, for $US240 million ($AU367 million), while remaining as its tenant for the next two decades.
It was also reportedly affected by the widespread semiconductor chip shortage, as well as experiencing problems with the production and delivery of its Artura hybrid sportscar.
According to the BBC, the company is now understood to be looking at technical partnerships with other businesses, to help it develop electric vehicle technology – including Swedish firm Polestar.
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