Abu Dhabi’s sovereign wealth fund is set to acquire the car division of McLaren, the renowned British supercar manufacturer. This will reshape the ownership of one of Britain’s most iconic car brands.
The deal follows a difficult period for the Woking-based company, which posted a record annual loss of £924 million in 2023, up sharply from £349 million the year before. Under the deal, McLaren’s long-standing majority shareholder, Bahrain’s state investment vehicle Mumtalakat, will retain control of the racing arm, while Abu Dhabi’s CYVN Holdings – backed by the trillion-dollar Abu Dhabi Investment Authority – will act as minority shareholder.
The signing ceremony was reportedly attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and son of UAE President Sheikh Mohamed bin Zayed Al Nahyan, underscoring the strategic importance of the takeover for the emirate. In a statement, Abu Dhabi described the move as “a defining moment” in CYVN’s plan to build a “leading, globally connected mobility platform.”
Mumtalakat first acquired a major stake in McLaren in 2007 and has repeatedly injected money in recent years to keep the carmaker afloat. The company suffered badly during the pandemic and faced mounting losses, prompting Bahrain’s state investor to look for a buyer. Having already engaged Wall Street bankers from JP Morgan, Mumtalakat has now found his exit strategy through CYVN’s investment.
McLaren CEO Tom Molnar has highlighted the need for the company to focus on electrification, with the company racing to develop its first fully electric supercar. The investment from Abu Dhabi could provide the capital needed for expanded research and development and to secure McLaren’s position in a future powered by advanced technology and cleaner propulsion systems.
Although McLaren’s racing division – originally founded in 1963 – will remain separate, the new deal is expected to secure the car industry’s financial position. The hope is that with the stable support of Abu Dhabi and Mumtalakat’s continued strategic involvement, McLaren can meet the challenges of rising costs, supply chain pressures and an evolving global market for luxury and high-performance vehicles.