Saudi Arabian Oil Company, commonly known as Saudi Aramco, has signed definitive agreements to acquire a 10 percent equity interest in HORSE Powertrain Limited, a global powertrain solutions company formed by Renault Group and Chinese automaker Geely Auto Group, the Saudi Press Agency (SPA) reported on Saturday.

According to a statement by Aramco, after the acquisition, Renault and Geely will each retain a 45-percent equity stake, and the price to be paid by Aramco at closing, which is subject to customary closing conditions including the receipt of regulatory approvals, will be based on an enterprise valuation of 7.4 billion euros (7.93 billion U.S. dollars).

The investment aims to enhance Aramco's contribution to the global energy transition through the development and commercialization of more efficient mobility solutions, the SPA reported.

"Aramco's investment is expected to directly contribute to the development and deployment of affordable, efficient, and lower-carbon emission internal-combustion engines globally," said Ahmad O. Al-Khowaiter, Aramco's executive vice president of technology and innovation.

"With Geely and Renault, we plan to leverage our collective expertise and resources to support ground-breaking advances in both engine and fuel technologies," he added.

Meanwhile, HORSE Powertrain Limited said in a press release on its website that the investment by Aramco will support its growth and contribute to the development of competitive powertrains and synthetic fuel solutions.

It noted that the company is expected to produce 5 million powertrain units annually, encompassing a complete portfolio of advanced powertrain technologies for partners around the world.