The project includes 17 factories and 19,000 employees
Bloomberg said, quoting sources, that Saudi Aramco is close to concluding a deal to acquire a stake in a joint internal combustion engine project between Renault SA and Zhejiang Geely Holding Group to enhance its presence in the field of transportation.
The people, who asked not to be named because the negotiations are confidential, said the world’s largest oil company would take a minority stake, with Renault and China’s Geely planning to keep equal stakes. They noted that while a non-binding agreement could be announced as soon as this week, it is not certain that a deal will be struck.
Representatives for Saudi Aramco, Renault and Geely declined to comment.
The deal will help Aramco grow in an industry transitioning to battery power. While sales of fully electric vehicles are increasing, combustion engine hybrid vehicles will be in demand for years to come, especially in developing countries. The oil major is already developing technology that can reduce engine emissions and improve fuel efficiency.
Renault told investors last year that its venture with Geely, which has yet to be formally named, would have 17 plants and 19,000 employees, with research centers in Europe, China and South America, as well as significant synergies in development spending and fixed assets. The project will also develop cleaner fuel technologies, which is why Renault was looking for an energy company as a partner.
