McLaren sold off to company owned by UAE government

An iconic automotive brand has been bought by the United Arab Emirates less than a year after being acquired as the play thing of another Middle East empire.

In a move set to reshape the future of British sports car manufacturing, Abu-Dhabi based CYVN Holdings Holdings, a UAE government-owned investment fund, has officially acquired McLaren Automotive.

The deal, believed to be worth an estimated 1.2 billion pounds ($2.3 billion AUD), was confirmed by previous owners and the nation’s wealth fund, Bahrain’s Mumtalakat.

Mumtalakat only took over the company in April this year after investing in McLaren since 2007, steadily increasing its investment to acquire the business from founders Ron Dennis and Mansour Ojjeh.

Under the agreement, CYVN will acquire McLaren’s automotive business and a non-controlling stake in McLaren’s racing business.

CYVN is an advanced mobility operator and investor with a portfolio including a $2.2 billion stake in Chinese EV manufacturer Nio and a controlling stake in Gordon Murray Technologies.

MORE:Car giant insiders lift lid on collapse rumours

The deal doesn’t mean the UAE-operated company has any controlling interest in the racing arm of McLaren. Picture: Clive Mason/Getty Images

MORE: Global carmaker crisis deepens as heads roll

Ironically, Gordon Murray is a designer of formula one racing cars for Brabham and McLaren and the McLaren F1 high-performance road car.

It’s unclear what the acquisition means, whether McLaren will move from England to the United Arab Emirates or if CYVN will reshape McLaren’s production portfolio.

The company said it wants “to empower McLaren to reach its full potential via access to engineering and design capabilities, leading-edge technology, and experienced leadership.”

CYVN Holdings chairman Jassem Mohammed Bu Ataba Al Zaabi said the acquisition marks a defining moment for the company.

“This acquisition marks a defining moment in CYVN’s vision to build a leading, globally connected mobility platform and underscores Abu Dhabi’s growing role as a global centre of excellence for innovation in advanced mobility,” he said.

MORE:Real reason car giant on brink of collapse

McLaren has faced huge financial difficulties in recent times. Picture: Supplied

MORE: Car giant burns billions in China failure

“By combining McLaren’s iconic heritage and expertise with CYVN’s advanced engineering and technology capabilities, we aim to redefine high-performance mobility and set a new benchmark for excellence.”

The British sport car manufacturer has faced significant financial challenges in recent years including financial strain brought on by the COVID-19 pandemic.

The company was forced to cut jobs, seek refinancing and relied heavily on shareholder support.

In an extraordinary move to shore up it’s ailing finances, McLaren sold off its UK headquarters - then signed a 20-year lease to remain there - as well as offloading precious cars from its collection of grand prix-winning Formula 1 machines.

The CYVN move will signals a new era for McLaren Automotive after a tumultuous period.