Bahrain’s Sovereign Wealth Fund Mumtalakat completed its full takeover of McLaren Group earlier this week, months after they bought $500 million worth of shares in the team. Mumtalakat, who owned 60% of shares previously, will now assume full control of the iconic British stable, which is a huge boost for their F1 division.
In June of 2023, Mumtalakat announced that they would be expanding their stakes in the McLaren group which included McLaren Racing, and they bought shares worth more than $500 million, as per Reuters. A simpler share structure, new governance processes, and delving into newer markets will be the focus for the group as they complete the full takeover.
Mumtalakat, however, invested in McLaren Group a very long time ago. In 2007, they bought 30% of shares from Ron Dennis and Mansour Ojjeh, the founders of the group and since then, they have kept increasing the percentage of shares they own. Over the years, they have invested heavily in the team and also contributed to the company’s F1 division.
Unfortunately, financial struggles never went away from McLaren. BBC reported that in 2023, their pre-tax losses amounted to $347 million. With the Bahrain-backed fund now taking over, the financial burden is expected to ease on the outfit.
Zak Brown extends contract with McLaren
The news of the Bahrain-backed group taking full control comes just days after Zak Brown‘s extension with the team till 2030 was announced. Brown has been CEO of the team since 2018, taking over when they were in a precarious position performance-wise.
Over the years, the progress has been evident at McLaren, with Brown being at the forefront of things. He brought in a plethora of sponsors and took them to the top of midfield as they look to become world champions again.
On his official Twitter (now X) account, Brown said, “It’s a privilege to work alongside the talented men and women across McLaren Racing’s different race series. Together, with our people, our fans, and our partners, we will continue to push the boundaries of motorsport. And strive for the highest performance on and off the track.”
McLaren’s start to the 2024 season on track has been decent. They are third in the standings with 28 points to their name, but Brown and Co. want to make bigger strides. With more developments expected to come in, McLaren want to compete for race wins before the season ends.
