China’s Geely Automobile Holdings and Renault SA have moved one step closer to finalising a deal to bring Saudi Arabia’s national oil producer on board as a partner in a venture to develop car engines based on gasoline, alternative fuels and hybrid technologies, reports the South China Morning Post.
Saudi Arabian Oil Company (Saudi Aramco) has signed a letter of intent to acquire a minority stake in an existing joint venture set up by Shanghai-headquartered Geely and France-based Renault, according to a filing with the Hong Kong stock exchange late on Wednesday.
“Saudi Aramco’s investment would support research and development across synthetic fuels and next-generation hydrogen technologies,” Renault and Geely said in a joint announcement released on Renault’s official website.