Nexen Tire Corp. has signed a memorandum of understanding "to explore strategic partnership opportunities" with Mubadala Investment Co. The strategic investment fund has made a direct investment in the tire maker as part of the agreement.
Khaldoon Khalifa Al Mubarak, managing director and group CEO of Mubadala, and Travis Kang, CEO of Nexen, signed the agreement July 19, 2017, in Abu Dhabi, the capital city of the United Arab Emerites.
Waleed Al Mokarrab Al Muhairi, deputy group CEO and CEO of the firm's alternative investments and infrastructure plagform, 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."
Nexen's Kang said, "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 "will explore a broader range of business initiatives, including potential further investment as well as wider cooperation in Nexen Tire's overseas expansion."
The companies say they'll also cooperate in other areas, like automotive technology of the future.
Who is Mubadala Investment Co.?
The company describes itself as a "pioneering global investor" and "Abu Dhabi's leading strategic investment company." Mubadala is active in 13 sectors and more than 30 countries around the world, working to create "lasting value for our shareholder, the government of Abu Dhabi."
Its work spans industries like aerospace, ICT, semiconductors, metals and mining, renewable energy and utilities, plus investments in oil and gas, healthcare, real estate and defense services.