McLaren Group is on the verge of a significant ownership change, with shareholders approving a plan that paves the way for Bahrain’s sovereign wealth fund, Mumtalakat Holding Company, to take over. The deal includes gaining control of McLaren Automotive and McLaren Racing, the latter being the championship’s second most successful constructor in Formula 1.
The proposed plan involves a complete recapitalization of the Woking-based holding company in England, streamlining its share structure and governance process. This strategic move aims to facilitate McLaren’s expansion into other markets and is expected to grant Mumtalakat Holding Company, the majority shareholder, full control, potentially occurring this week, according to Sky Sports.
The joint press release emphasized that completing the recapitalization is a significant step in the ongoing transformation of the McLaren Group, providing a solid foundation for expanding the product offering and brand presence. Paul Walsh, McLaren Group Executive Chairman, expressed the importance of this move in positioning the group for future growth.
This development aligns with McLaren’s recent financial challenges despite its success in selling 2,500 vehicles last year, including impressive road-going supercars. Over the years, McLaren has faced financial difficulties, prompting multiple requests for cash injections from shareholders. The company reportedly utilized £267 million (approximately $339 million) in the first nine months of 2024, attributed in part to decreased vehicle sales and increased inventory.
In a bid to address financial concerns, McLaren sold 54 vehicles from its heritage car collection to Mumtalakat last year, setting the stage for the current ownership transition. Earlier this year, McLaren increased its stake through the acquisition of more than $500 million worth of shares and warrants from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management, raising the fund’s stake to nearly 60 percent.
The approval of the ownership transfer by shareholders marks a pivotal moment for McLaren, offering the potential for stability and growth under the stewardship of Mumtalakat Holding Company. As the deal unfolds, the collaboration between McLaren and the sovereign wealth fund is expected to shape the future trajectory of the iconic British supercar maker in both automotive and Formula 1 domains.
