NEXEN TIRE and Mubadala Investment Company(Mubadala), the Abu Dhabi strategic investment fund, signed a Memorandum of Understanding to explore strategic partnership opportunities. Mubadala has made a direct investment into NEXEN TIRE as part of the agreement.
NEXEN TIRE is one of the fastest growing companies in the automotive industry, with a compounded annual growth rate of 15% over the past ten years. The company sells 40 million tires to more than 140 countries annually, with more than 4 million tires 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 July 19th.
Waleed Al Mokarrab Al Muhairi, Deputy Group CEO & 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 prioritizes partnership with best-in-class global organizations as a key driver of creating lasting value for our shareholder. We look forward to exploring opportunities with NEXEN TIRE.”
Travis Kang, CEO of NEXEN TIRE, added: “This strategic partnership with Mubadala Investment Company is a significant milestone for NEXEN TIRE in our journey to becoming a global top 10 tire company by 2025. This collaboration will accelerate NEXEN TIRE’s growth in international markets.”
In addition to the equity investment, Mubadala and NEXEN TIRE will explore a broader range of business initiatives, including potential further investment as well as wider cooperation in NEXEN TIRE’s overseas expansion. The parties will also cooperate in other areas such as future automotive technology linked to the Fourth Industrial Revolution.