Bloomberg reported, citing sources, that Saudi Aramco is close to closing a deal to acquire a stake in a joint combustion engine project between Renault SA and Zhejiang Geely Holding Group to strengthen its presence in the transport sector.
The people, who asked not to be identified because the talks are confidential, said the world’s largest oil company would receive a minority stake, while Renault and China’s Geely plan to keep equal shares. They noted that while a non-binding agreement could be announced as early as this week, there is no certainty that a deal will be struck.
Bloomberg: Aramco wants to buy a stake in an LPG plant outside the Kingdom
Representatives for Saudi Aramco, Renault and Geely declined to comment.
The deal will help Aramco grow in the battery-powered industry. While sales of all-electric vehicles are growing, internal combustion hybrid vehicles will be in demand for years to come, especially in developing countries. A major oil company is already developing technologies that can reduce engine emissions and improve fuel efficiency.
Renault told investors last year that its yet-to-be-named venture with Geely will have 17 factories and 19,000 employees, research centers in Europe, China and South America, and significant synergies in development spending and fixed assets. . The project will also develop cleaner fuel technologies, which is why Renault was looking for an energy company as a partner.