Nexen Tire, a tire manufacturer has signed a Memorandum of Understanding (MOU) with the Abu Dhabi based strategic investment fund, Mubadala Investment Company (Mubadala). As part of the agreement between the two parties, they will explore avenues for strategic partnership and Mubadala has made a direct investment into Nexen.
Nexen Tire is one of the fastest growing companies in the automotive industry, and has grown at a compounded annual growth rate of 15 percent over the past ten years. On an annual basis, the tire manufacturer sells 40 million tires in over 140 countries. When it comes to the Middle East, over 4 million Nexen tires are sold every year.
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.
Commenting on the partnership, Waleed Al Mokarrab Al Muhairi, Deputy Group CEO & Chief Executive Officer, Alternative Investments and Infrastructure, Mubadala said that Nexen Tire appeared to be an interesting investment opportunity for Mubadala Investment Company on the basis of its high performance as a business and the scope it had for significant global growth.
He said, “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 that the strategic partnership with Mubadala Investment Company was a significant milestone for Nexen Tire in its journey to one of the top ten tire manufacturers in the world by 2025. He expressed his hope that the partnership with Mubadala would help to 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 parties will also cooperate in other areas such as future automotive technology linked to the Fourth Industrial Revolution.
Manju Mathew, an MBA in marketing, completed publisher training courses from the Oxford Brookes University and New York University. She started with marketing and PR roles before moving on to her current position as a full time writer. Currently living in Dubai, her life as an expat has sharpened her observation skills and flair for writing. She enjoys writing about luxury cars like Ferrari, Lamborghini, etc even if she can only dream of owning them.
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