(Yicai) Dec. 4 -- Saudi Arabian Oil Company, the world's largest oil producer, has acquired a 10 percent stake in a joint venture set up by French auto giant Renault Group and Chinese peer Geely Holding Group to make powertrain components.

Aramco's investment is based on a EUR7.4 billion (USD7.8 billion) valuation of Horse Powertrain, with Renault and Geely each retaining a 45 percent stake, the Dhahran-based company announced on Dec. 2.

Renault and Geely set up Horse Powertrain to manufacture hybrid and internal combustion engine powertrain components and synthetic fuels in May, according to the Hangzhou-based company. The pair inked the stake acquisition deal with Aramco in June.

"At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference," said Executive Vice President of Technology and Innovation Ahmad O. Al-Khowaiter. "Our investment in Horse Powertrain builds on our considerable research and development in this field.

"In joining forces with two of the world's leading carmakers, we aim to leverage our collective know-how to take lower-emission mobility solutions forward," Khowaiter noted.

Aramco and its affiliate Valvoline Global Operations will collaborate with Horse Powertrain on innovations in internal combustion engine technology, fuels, and lubricants as part of the deal, it pointed out.

London-based Horse Powertrain has absorbed assets from Renault and Geely, operating 17 plants and five R&D centers, with an employee headcount of 19,000 worldwide. It aims to have an annual output of 5 million powertrain units and revenue of EUR15 billion (USD15.8 billion).

Horse Powertrain's board of directors will include three directors from Geely, three from Renault, and one from Aramco. Li Donghui, the chief executive officer of the Chinese carmaker, serves as chairman.

Editor: Martin Kadiev