Evolution, not revolution at McLaren – Arab News

The restructuring of McLaren into McLaren Group combining the technology group and automotive arm is a good example of long-term strategic thinking. Furthermore, it reasserts Arab leadership and management of their sovereign assets abroad. The McLaren Group is part-owned by sovereign wealth fund Bahrain Mumtalakat Holding Co. and TAG Group, which are set to remain majority shareholders. Sheikh Mohammed bin Essa Al-Khalifa of Bahrain will become executive chairman of the new group, valued at $3.1 billion, and pledged to follow a policy of evolution, not revolution. He succeeds Ron Dennis, the veteran chairman of 37 years who sold his holdings to the group and resigned. This move ensures stability and managed growth for McLaren after a period of uncertainty and speculation. Until recently, it was rumored that McLaren was heading to float on the stock exchange, following in the footsteps of Ferrari. This was followed by news of a possible takeover by Apple or Chinese companies. Dennis, 70, said after losing the CEO role at McLaren Technology that the grounds for his removal were entirely spurious and came after clashes with Mumtalakat and TAG over his views on outside investment and the future of the business. It seems that Dennis wanted revolution through a public offering of McLaren stock, of which he had about $350 million worth of shares (which he sold to Mumtalakat). However, the conservative sovereign fund and the TAG Group prefer caution and evolution. As majority holders in the new McLaren Group, they have asserted their authority and forged their calm way forward. McLaren has been successful with its car production arm and has achieved profits in the past few years. They have ambitious plans for the future and they have the talent, tools and technology to further their success. Adel Murad is a senior motoring and business journalist based in London.

The restructuring of McLaren into McLaren Group combining the technology group and automotive arm is a good example of long-term strategic thinking. Furthermore, it reasserts Arab leadership and management of their sovereign assets abroad. The McLaren Group is part-owned by sovereign wealth fund Bahrain Mumtalakat Holding Co. and TAG Group, which are set to remain majority shareholders. Sheikh Mohammed bin Essa Al-Khalifa of Bahrain will become executive chairman of the new group, valued at $3.1 billion, and pledged to follow a policy of evolution, not revolution. He succeeds Ron Dennis, the veteran chairman of 37 years who sold his holdings to the group and resigned. This move ensures stability and managed growth for McLaren after a period of uncertainty and speculation. Until recently, it was rumored that McLaren was heading to float on the stock exchange, following in the footsteps of Ferrari. This was followed by news of a possible takeover by Apple or Chinese companies. Dennis, 70, said after losing the CEO role at McLaren Technology that the grounds for his removal were entirely spurious and came after clashes with Mumtalakat and TAG over his views on outside investment and the future of the business. It seems that Dennis wanted revolution through a public offering of McLaren stock, of which he had about $350 million worth of shares (which he sold to Mumtalakat). However, the conservative sovereign fund and the TAG Group prefer caution and evolution. As majority holders in the new McLaren Group, they have asserted their authority and forged their calm way forward. McLaren has been successful with its car production arm and has achieved profits in the past few years. They have ambitious plans for the future and they have the talent, tools and technology to further their success. Adel Murad is a senior motoring and business journalist based in London.

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Evolution, not revolution at McLaren - Arab News