Nexen Tire, a global tyre manufacturer, and Mubadala Investment Company (Mubadala), the Abu Dhabi strategic investment fund, recently signed a Memorandum of Understanding to explore strategic partnership opportunities. Mubadala has made a direct investment in Nexen as part of the agreement.
Nexen Tire and Mubadala Investment Company Ink Memorandum of Understanding
Nexen Tire is one of the fastest growing companies in the automotive industry, with a compounded annual growth rate of 15 per cent over the past ten years. The company sells 40 million tyres to more than 140 countries annually, with more than 4 million tyres sold throughout the Middle East.
Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala, and Travis Kang, CEO of Nexen Tire, signed the MOU in Abu Dhabi on 19th July.
Waleed Al Mokarrab Al Muhairi,Deputy Group CEO and Chief Executive Officer, Alternative Investments and Infrastructure, Mubadala said: “As a high performing business with significant global growth potential, Nexen Tire represents an interesting investment opportunity for Mubadala Investment Company. Our investment approach prioritises partnership with best-in-class global organisations as a key driver of creating lasting value for our shareholders. We look forward to exploring opportunities with Nexen Tire.”
Kang added: “This strategic partnership with Mubadala Investment Company is a significant milestone for Nexen Tire in our journey to becoming a global top 10 tyre company by 2025. This collaboration will accelerate Nexen Tire’s growth in international markets.”
In addition to the equity investment, Mubadala and Nexen would explore a broader range of business initiatives, including potential further investment as well as wider cooperation in Nexen Tire’s overseas expansion. The parties would also cooperate in other areas such as future automotive technology linked to the Fourth Industrial Revolution.