In 2023, McLaren faced massive losses exceeding £900 million, leading to the acquisition of the British supercar manufacturer by Abu Dhabi's sovereign wealth fund. Previously, McLaren, based in Woking, was owned by a state-owned investment company from Bahrain. However, the company has now entered into an agreement to sell its automotive business to CYVN Holdings, managed by Abu Dhabi Investment Authority.
The signing ceremony was witnessed by Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and son of UAE President Sheikh Mohammed bin Zayed Al Nahyan. McLaren recorded a staggering annual loss of £924 million in 2023, a significant rise from the £349 million loss in the previous year. Under the deal, Bahrain's investment company will maintain control of the McLaren racing brand while CYVN will enter as a minority shareholder.
Abu Dhabi views this acquisition as a pivotal moment in CYVN’s vision to build a leading global connected mobility platform and has previously invested in Chinese electric vehicle giant NIO as part of its efforts to diversify its economy away from oil and gas.
Jassim Mohammed Bouataba Al Zaabi, Chairman of the fund, stated, "By combining McLaren's heritage and iconic expertise with CYVN's advanced engineering and technology capabilities, we aim to redefine high-performance mobility and set a new standard of excellence."
Bahraini Minister of Finance and Chairman of Mumtalakat, Sheikh Salman bin Khalifa Al Khalifa, added that this agreement represents a pivotal moment in the strategic vision of Mumtalakat to transform the McLaren group, expressing confidence in CYVN’s ability to capitalize on McLaren's strong legacy and unlock its full potential while Mumtalakat continues to play a strategic role in empowering McLaren for future growth.
This agreement comes after a tumultuous period for McLaren, which required Mumtalakat to inject tens of millions of pounds repeatedly to keep the carmaker afloat. This led the Bahrainis to hire Wall Street bankers from JPMorgan to find a buyer earlier this year. Mumtalakat has held a significant stake in McLaren since 2007. In 2020, the fund joined other shareholders to provide an emergency cash injection of £300 million to the carmaker as the pandemic devastated its finances.
Another £1 billion was raised the following year through measures including the sale and leaseback of the company’s headquarters in Woking, the sale of part of its heritage car collection, and fundraising efforts that included Saudi Arabia’s sovereign wealth fund.
However, the Bahrainis reportedly lost patience and sought to exit the business. Meanwhile, McLaren is looking towards an electric future and will need investment to help it develop a new line of cars. It is racing to develop its first electric supercar but has warned of the need for more research and development.
Last year, McLaren acknowledged that it was relying on further investment from its Bahraini owners just to stay afloat as losses in the business had more than doubled. According to accounts published in October, the company’s annual losses ballooned from £349 million to £924 million in 2023, after sales dropped from £559 million to £377 million. This coincided with a 6% decrease in the number of cars sold by the company, down to 2,248 units.
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Senior Writer The quest for automotive knowledge began as soon as the earliest memories. Various sources information, even questionable ones, have been explored including video games, television, magazines, or even internet forums. Still stuck in that rabbit hole.
