UAE firm invests in Nexen Tire

Abu Dhabi, UAE - Mubadala Investment Co., an Abu Dhabi-based strategic investment fund, has made an equity investment in Nexen Tire Corp. and struck a deal with the South Korean tire maker to "explore strategic partnership opportunities."

Mubadala — an investor in industrial sectors such as aerospace, semiconductors, and renewable energy and utilities — and Nexen said they 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 also said they will cooperate in other areas such as future automotive technology linked to the Fourth Industrial Revolution.

Khaldoon Khalifa Al Mubarak, managing director and group CEO of Mubadala, and Travis Kang, CEO of Nexen Tire, signed the parties' memorandum of understanding in Abu Dhabi on 19 July.

The size of Mubadala's investment in Nexen was not disclosed.

"This strategic partnership with Mubadala… is a significant milestone for Nexen Tire in our journey to becoming a global top 10 tire company by 2025," Kang said. "This collaboration will accelerate Nexen Tire's growth in international markets."

Waleed Al Mokarrab Al Muhairi, deputy group CEO of Mubadala, said Nexen Tire "represents an interesting investment opportunity" because of its significant growth potential.

"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."

Al Muhairi is also CEO, alternative investments and infrastructure, for Mubadala.