Mumtalakat, the Bahraini sovereign wealth fund, and Abu Dhabi-based investment group CYVN Holdings will take full ownership of the McLaren Racing Formula 1 motor racing team by acquiring the minority stakes owned by MSP Sports Capital and other investors at a significant valuation, it has been reported.
According to Sky News, Mumtalakat and CYVN Holdings, which already hold controlling shares of more than 60% in the team, will buy out the 30% that they do not own.
The agreement could be confirmed this week and would value McLaren Racing at over £3 billion ($4 billion), demonstrating the resurgence of its motorsport operations under chief executive Zak Brown.
McLaren driver Oscar Piastri, who won last weekend's Dutch Grand Prix at Zandvoort, currently leads the F1 drivers’ standings, with his teammate Lando Norris in second place.
Meanwhile, McLaren is on course to win the F1 constructors' championship for a second consecutive year with a huge lead over Ferrari in second.
Sky News reports that Mumtalakat and CYVN Holdings will acquire the stakes in McLaren Racing currently owned by MSP Sports Capital, Ares Investment Management, UBS O'Connor, and several other small shareholders.
MSP Sports Capital headed up a deal announced in 2020 to buy an initial 15% stake in McLaren Racing, which gave the business a valuation of £560 million.
That deal provided much-needed funds to the wider McLaren Group, whose automotive division’s finances were placed in a precarious state by the pandemic.
The £3 billion-plus valuation at which the 30% stake is expected to be sold this week reflects the stronger financial position of the broader McLaren Group, as well as the strong performance of the McLaren Racing business.
McLaren Group Ltd owns McLaren Racing, while McLaren Group Holdings - the entity owned by CYVN - in turn owns 100% of McLaren Automotive.
In 2023, Saudi Arabia’s sovereign wealth Public Investment Fund (PIF) sold its stake in McLaren Group to Mumtalakat.
PIF, one of the most prominent sports investors, and global investment firm Ares Management acquired the preference shares in McLaren worth £400 million in July 2021.
Mumtalakat will retain a controlling stake in McLaren Racing after the buyout of the minority investors.
Founded in 1963 by Bruce McLaren, the company owns one of the most famous names in British motorsport. It has won more than 200 Grands Prix, three Indianapolis 500s, and the Le Mans 24 Hours on its debut.
