Abu Dhabi’s sovereign wealth fund is set to acquire the automotive division of McLaren, the iconic British supercar manufacturer, in a move that reshapes the ownership of one of the UK’s most iconic car brands.
The deal follows a difficult period for the Woking-based company, which posted a record annual loss of £924m in 2023, up sharply from £349m the previous year. Under the agreement, Bahraini state-owned investment firm Mumtalakat, McLaren’s long-standing majority shareholder, will retain control of the racing arm, while Abu Dhabi’s CYVN Holdings – backed by the trillion-dollar Abu Dhabi Investment Authority – steps in as a minority shareholder.
The signing ceremony was reportedly witnessed by Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and son of UAE President Sheikh Mohammed bin Zayed Al Nahyan, underscoring the strategic importance of the acquisition 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 took a significant stake in McLaren in 2007, and has repeatedly injected money over the past few years to keep the carmaker afloat. The company suffered severely during the pandemic and faced mounting losses, prompting Bahrain’s sovereign investor to look for a buyer. Having already hired Wall Street bankers from JPMorgan, Mumtalakat has now found its own exit strategy through the CYVN investment.
McLaren CEO Tom Molnar has stressed the company’s need to shift towards electric vehicles, as the company races to develop its first all-electric supercar. The investment from Abu Dhabi could provide the capital needed to conduct extensive research and development and secure McLaren’s position in a future driven by advanced technology and clean propulsion systems.
While McLaren’s racing division – originally founded in 1963 – will remain separate, the new deal is expected to secure the financial health of the motor business. The hope is that with the stable support of Abu Dhabi and the continued strategic involvement of Mumtalakat, McLaren will be able to overcome the challenges of rising costs, supply chain pressures, and the evolving global market for luxury and performance vehicles.