Bahrain’s Mumtalakat Holding Company Set to Acquire McLaren

Bahrain Mumtalakat Holding Company

Recent shareholder approval paves the way for Bahrain’s sovereign wealth fund, Mumtalakat Holding Company, to take over McLaren, the prestigious British supercar manufacturer, according to Bloomberg. As part of this substantial deal, the fund is poised to gain control not only of McLaren Automotive but also McLaren Racing, a Formula 1 team holding the title as the championship’s second most successful constructor.

The wealth fund’s proposed strategy involves a comprehensive recapitalization of the Woking-based holding company, which houses both McLaren Automotive and McLaren Racing (participating in INDYCAR). This initiative, outlined in a joint press release, aims to introduce a more efficient share structure and governance system. The envisioned reforms are set to facilitate McLaren’s expansion into new markets while granting the fund, already the major shareholder, complete control—anticipated to be finalized as early as this week, as reported by Sky Sports.

Expressing his optimism about the transformation, McLaren Group Executive Chairman Paul Walsh stated, “Completing the recapitalization is a significant step in the ongoing transformation of the Group and provides a solid platform from which to grow our product offering and brand presence.”

This development aligns with McLaren Group’s financial trajectory, marred by persistent monetary challenges despite the production of approximately 2,500 vehicles last year. Despite crafting some of the automotive industry’s remarkable road-legal supercars, McLaren has grappled with financial woes, frequently resorting to shareholder funds. Bloomberg reported a staggering £267 million, equivalent to roughly $339 million, in expenditure for the company during the initial nine months of 2024. Contributing factors include reduced vehicle sales and increased inventory, adding to the financial strain.

In a strategic maneuver last year, McLaren sold 54 vehicles from its esteemed heritage car collection to Mumtalakat, a move considered a precursor to the recent acquisition plans, as highlighted by Reuters. Earlier in June, the company escalated its stake by purchasing shares and warrants exceeding $500 million from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management, bolstering the fund’s ownership to nearly 60 percent. This series of initiatives solidifies Bahrain’s Mumtalakat Holding Company as a pivotal player in McLaren’s evolving corporate landscape.