Abu Dhabi investor agrees to buy McLaren Automotive

Abu Dhabi-based CYVN Holdings has agreed a deal to buy McLaren Automotive, with the promise of fresh cash injection for the British sports car maker.

Bahrain's sovereign wealth fund, Mumtalakat, which in April took full ownership of the McLaren Group (parent of the car firm and McLaren Racing), has confirmed a binding agreement has been reached with the 'specialist investment vehicle'. 

The deal also includes a non-controlling stake in the McLaren Group.

The two firms have been "exploring a potential partnership" since October, with CYVN promising to "drive McLaren’s growth trajectory and accelerate progress in the advanced mobility sector".

Mumtalakat said the deal would also help to “deliver sustainable long-term financial returns” for the British car maker.

CYVN already holds stakes in Gordon Murray Technologies and British EV start-up Forseven and is the majority shareholder in Chinese EV specialist Nio, suggesting McLaren could utilise tech from other firms in its future cars, especially when it comes to EVs.

"By combining McLaren’s iconic heritage and expertise with CYVN’s advanced engineering and technology capabilities, we aim to redefine high-performance mobility and set a new benchmark for excellence," said CYVN chairman Jassem Mohammed Bu Ataba Al Zaabi.

Shaikh Salman bin Khalifa Al Khalifa, chairman of Mumtalakat, added: “This agreement marks a pivotal moment for the transformation of McLaren Group. We are confident in CYVN's ability to build on McLaren’s strong legacy and unlock its full potential.

"With CYVN's advanced engineering capabilities and forward-looking vision, we believe they are the perfect partner to drive the next phase of McLaren's growth and evolution.”   

This is the latest roll of the dice by McLaren to boost its finances in the post-Covid era.

The Group has struggled to recover since the pandemic blew a hole in its finances, resulting in the firm undertaking an “urgent” round of refinancing in mid-2020 as creditors circulated. Some 1200 jobs were also shed as part of rigorous cost-cutting.

Since then, it has been has been reliant on support from Mumtalakat - which held a 60% share in the Group until its full takeover in April – and other shareholders.

The latest injection came in November last year, when £450 million was raised by several unnamed shareholders.