Leading F1 team 'sold' to Middle East state in huge deal

Photo: © LAT Images

Latest F1 News

Leading F1 team 'sold' to Middle East state in huge deal

Bahrain's sovereign wealth fund is set to take full control of the team's parent group this week

Tyler Rowlinson

Wednesday 20 December 2023 12:07

The sovereign wealth fund of Bahrain is set to take full control of the McLaren group after agreeing a deal with its minority shareholders.

It has been reported by Sky Sports News that Mumtalakat, the Gulf state’s investment fund, is on the brink of a deal with McLaren which would see roughly 20 percent of its equity being converted into warrant-like instruments.

This would mean that the new contracts would have the economic rights to benefit from a future ‘liquidity event’, but would not be classed as shares.

Article continues under video

It would also see the state of Bahrain become the F1 team-owning group’s sole shareholder, with the deal expected to be announced this week.

The state of Bahrain's wealth fund is set to take control of McLaren

McLaren are set to sign the deal with Mumtalakat this week

Bahrain take control of McLaren

McLaren Racing, which directly houses all racing operations including F1, does have its own external shareholders after a deal was struck during the Covid pandemic to raise capital.

The deal to be finalised this week will underline the confidence and leadership in Mumtalakat to 'turn around' McLaren, according to one insider.

The investment fund acquired McLaren’s shareholdings of Saudi Arabia’s sovereign wealth fund, as well as major US-based financial investor Ares Management earlier this year.

The Gulf state have already bought out the team's other investors

Most recently, it was reported that they had injected another £80 million into the company, which built the Artura supercar after it had suffered delays.

McLaren have witnessed a resurgence under the guidance of Zak Brown in F1, as evidenced by their upturn in form in the second half of 2023 to see them finish fourth in the constructors' championship with drivers Lando Norris and Oscar Piastri.

GPFans has contacted McLaren for comment.

McLaren