Bahrain’s sovereign wealth fund, Mumtalakat, has recently acquired full ownership of the McLaren Group, a renowned manufacturer of high-end sportscars and the majority stakeholder of the McLaren F1 team. This acquisition comes at a crucial time for the British company, which has been grappling with significant financial challenges.
Amidst the deep financial uncertainty, McLaren sees the takeover as a pivotal moment. The company is now poised to explore potential technical partnerships with other businesses to advance its electric vehicle technology. McLaren Group’s executive chairman, Paul Walsh, expressed his delight at Mumtalakat’s continued commitment, emphasizing that this deal will further enable the company to focus on delivering its long-term business plan and investing in new products and technologies.
Headquartered in Woking, Surrey, the McLaren Group encompasses McLaren Automotive, a major player in the market for prestige sportscars, competing with industry giants like Ferrari and Porsche. Additionally, the group holds a majority stake in McLaren Racing, which owns the McLaren Formula 1 team and competes in various racing series, including the US IndyCar series, Formula E, and Extreme E.
McLaren’s financial struggles were exacerbated by the Covid-19 pandemic, leading to the suspension of car production and the cancellation of racing activities worldwide. The company underwent a significant restructuring in 2020, resulting in over 1,000 job losses. Furthermore, supply chain disruptions and challenges with the new Artura hybrid sportscar added to McLaren’s woes, culminating in a pre-tax loss of £276m in the first nine months of the previous year.
Mumtalakat’s involvement with McLaren dates back to 2007 when it acquired a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh. Over the years, it increased its stake to 60% while injecting substantial capital into the business. The decision to assume full control, initially agreed upon last year, serves to bolster McLaren’s finances in the short term and streamline future partnerships.
As McLaren seeks new technical collaborations to drive its growth, the acquisition by Mumtalakat marks a significant development in the company’s trajectory, positioning it for strategic advancements in the competitive automotive and racing industries.
