Abu Dhabi’s CYVN Holdings to acquire McLaren’s automotive business

Abu Dhabi-backed CYVN Holdings said on Tuesday that it has signed a preliminary agreement to acquire a stake in British sports car maker McLaren and take full control of its automotive business.

“The potential partnership would see CYVN acquire full ownership of McLaren’s automotive business in addition to a non-controlling stake in McLaren Group,” Bahrain Mumtalakat and CYVN said in a statement without providing further details.

Mumtalakat has been seeking to bring in additional investors at McLaren Group, the sports car brand that was founded by racer Bruce McLaren in 1963. The fund acquired full ownership of the group, which includes the supercar maker and Formula One team McLaren Racing, in April.

CYVN’s investment is expected to bring access to additional capital, advanced engineering expertise and pioneering technology, particularly in the field of electric vehicles.

It would also allow McLaren to benefit from the broad cross-industry experience of CYVN’s team, building on CYVN Holdings’ previous strategic investments in NIO, Forseven and Gordon Murray Technologies.

Meanwhile, Abu Dhabi’s CYVN aims to “create a smart mobility platform by investing in and partnering with industry leaders around the world”.

The investment firm teamed up with electric vehicle (EV) maker NIO to set up NIO MENA. The new joint venture will bring the Chinese automaker’s electric vehicles to the region, marking a significant step in its global expansion.

The two entities plan to establish a research and development (R&D) centre in Abu Dhabi that will focus on autonomous driving and artificial intelligence (AI) advancements. This will strengthen NIO’s global R&D capabilities and foster technological innovation in the MENA region.

Last December, Nio secured a $2.2bn cash injection from CYVN Holdings for a 20.1 per cent stake in the premium electric car manufacturer.

NIO delivered 149,281 vehicles in the January-September period, a 35.7 per cent increase from the corresponding period a year ago.

Read: Nio and CYVN Holdings drive EV innovation in Abu Dhabi debut