Bahrain’s sovereign wealth fund, Mumtalakat Holding Company, has finalised a deal to become the sole shareholder of McLaren Group, marking a significant milestone in the journey of one of Britain’s most iconic automotive manufacturers.
After years of negotiations aimed at securing the long-term stability of the company, McLaren is now under the full ownership of Bahrain Mumtalakat Holding Company.
The completion of this deal is expected to facilitate McLaren’s pursuit of strategic partnerships with global automotive giants, potentially leading to technological collaborations and the exploration of new avenues for growth.
Paul Walsh, McLaren Group Executive Chairman, 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.”
His Excellency 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.
“The completion of this process is also a significant milestone that reflects our support for McLaren’s continued innovation and long-term commitment to excellence,” he said.
The recapitalization of McLaren involves the conversion of minority shareholders’ equity into warrant-like instruments, granting them economic rights linked to future liquidity events without conferring ownership shares. This restructuring aims to streamline McLaren’s capital structure, making it more attractive for potential partners and investors.
Despite challenges posed by the COVID-19 pandemic and supply chain disruptions, McLaren has undertaken significant efforts to strengthen its financial position, including job cuts, equity and debt fundraising, and corporate transactions. The company’s racing division, McLaren Racing, continues to operate with external shareholders, maintaining its status as a prominent force in Formula One and motorsports.
Founded in 1963 by Bruce McLaren, McLaren Group boasts a rich legacy in motorsport, with numerous championships and victories to its name. The reunification of its separate divisions following the departure of former CEO Ron Dennis in 2017 marked a new chapter in McLaren’s history, paving the way for strategic realignment and growth opportunities.
As McLaren transitions towards hybrid and electric vehicles, simplified ownership and governance structures are expected to catalyze partnerships and innovation in the automotive industry. While an initial public offering (IPO) remains a potential avenue for future fundraising, McLaren’s focus on strategic collaborations and technological advancements positions it for sustained growth and success in the dynamic automotive landscape.
