UAE acquires McLaren following record loss by the carmaker
Strategic move by CYVN to boost investments and support McLaren's electric future.
UAE Sovereign Fund Acquires McLaren After Record Losses
An Abu Dhabi-based sovereign wealth fund has acquired the venerable British supercar maker McLaren after a string of financial troubles. Under the guidance of the emirate’s crown prince, the deal marks a major change in McLaren’s ownership structure, as the automotive division is now owned by CYVN Holdings, which is run by the Abu Dhabi Investment Authority.
McLaren’s parent company, Mumtalakat of Bahrain, which had owned the brand since 2007, sold the automotive arm to the UAE fund after McLaren reported a record loss of £924 million for 2023, a sharp increase from £349 million the previous year. CYVN will retain a minority stake in McLaren Racing, while Mumtalakat will continue to oversee the business.
The acquisition furthers Abu Dhabi’s key objective of diversifying its holdings and reducing its reliance on oil. Combining McLaren’s renowned engineering expertise with its own cutting-edge technologies and capabilities is one of CYVN’s key objectives. As McLaren is a leader in the fast-growing automotive industry, the UAE financial institution will make a significant investment to support the future development of the company’s electric supercar.
Despite the financial problems, McLaren’s rich heritage, especially in racing, remains intact. As McLaren continues to grow in the increasingly electrified mobility market, the new partnership is expected to unlock its potential.
