When BNP Paribas advised Chinese automaker Geely on the €7.4 billion ($8.3 billion) formation of Horse Powertrain – a joint venture (JV) with French automaker Renault – in May 2024, the deal was more than a corporate reshuffle. It marked a strategic pivot for both companies: offloading legacy combustion engine assets to focus on electric vehicles (EVs).
Headquartered in London, the Horse JV consolidates Geely and Renault’s powertrain operations across 17 factories in 12 countries. Focused on developing efficient combustion engines and hybrid systems, the venture projects annual revenues of €15 billion and has capacity to produce five million powertrains annually.
Months later, BNP Paribas again guided Geely in selling a 10% stake in Horse to the world’s largest oil producer Saudi Aramco — transforming the 50-50 partnership into a 45-45-10 structure. This seemingly modest adjustment delivered extraordinary benefits to all parties.
US-China tensions are likely to encourage further Europe-Asia cooperation and partnerships
Richard Griffiths, BNP Paribas
By outsourcing combustion engine production to a dedicated organisation with a third-party stakeholder, Renault and Geely could focus their corporate narrative on EV development, bringing clear benefits for green bond issuance and similar initiatives.
For Aramco, the partnership ensures continued relevance for petroleum products while contributing to reduced emissions. Despite the EV transition, by 2040, more than half of global vehicle production is still expected to rely on internal combustion engines. The Horse JV bridges the gap between current market realities and future sustainability goals.
“The transaction is a template for other OEMs [original equipment manufacturers] considering similar arrangements or potentially joining the JV,” says Richard Griffiths, head of M&A in Asia-Pacific for BNP Paribas. “In the long run, we would expect a continued trend of OEMs outsourcing powertrain production so they can focus on vehicle design, marketing and EV development.”
A new paradigm for cross-border M&A
The deal reflects a profound reversal in global automotive dynamics. “Historically, the expertise was in Europe and they found a joint-venture partner in China for manufacturing,” observes Griffiths. “Now, it’s completely reversed – the expertise and technology is in China. They’re leading Europe in areas like battery technology and charging infrastructure.”
Today, European firms contribute market access, distribution networks and manufacturing expertise, while Chinese partners deliver cutting-edge EV technology and software innovations.
EU tariffs on Chinese electric vehicles have accelerated this trend. Chinese automakers now prioritise establishing European production facilities, with cross-border JVs providing immediate access to existing factories and distribution channels.
BNP Paribas has positioned itself strategically at this intersection. As Europe’s largest bank, it commands extensive continental networks while maintaining offices across 12 Asian markets – not just regional hubs such as Singapore or Hong Kong. This dual presence gives the bank comprehensive cross-border capabilities suited to Europe-Asia transactions. It proved crucial for the Horse JV, which required coordinated expertise in antitrust regulations, valuations and environmental assessments across multiple jurisdictions.
“US-China tensions are likely to encourage further Europe-Asia cooperation and partnerships,” Griffiths notes. “As the largest European bank, our message to our Asian clients is: ‘If you want to engage with European companies, call us first.’”
Deep client partnerships
The bank has strengthened its China presence by recruiting local banking talent and prioritising strategic opportunities in the EV sector with key clients. For these select relationships, BNP Paribas delivers comprehensive services spanning multiple financial needs.
With Geely, the relationship evolved from lending to bond issuances, IPOs and eventually complex M&A. BNP Paribas also serves as Geely’s international partner for vehicle finance leasing in Europe and China.
“[We are] embedding ourselves with some key clients to make sure that we get really into the flow and investment banking with them, where we started on a different product line,” says Griffiths, pointing to the JV as an example.
This deep engagement enabled forward planning. The bank and Geely prepared for strategic investor entry two years before execution, designing governance structures specifically to accommodate companies such Aramco and making the JV ‘investor-ready’ from inception.
Beyond the deal
BNP Paribas climbed to eighth place in Hong Kong’s M&A league tables in 2024 – up from a single undisclosed deal in 2023. The bank advised on five Hong Kong-linked transactions, including two takeovers and three cross-continent joint ventures last year. Across Asia, it has advised on 17 cross-border transactions.
In 2025, BNP Paribas closed another landmark JV deal between China’s second-largest provider of charging equipment StarCharge and France’s Schneider Electric. Acting as the sole financial adviser to StarCharge, the bank supported the venture to develop EV charging infrastructure across Europe, leveraging expertise gained from China.
“We’ve got quite an expertise around that EV space, but also around joint ventures,” says Griffiths. “And so, we’re increasingly seeing joint ventures as a way of companies working together in different sectors.”
This collaborative approach has proven particularly effective in the automotive industry, where partnerships such as Renault-Nissan-Mitsubishi’s alliance have shown how shared interests can generate long-term value without the complexities of full acquisitions.
“In automotive, joint ventures are an attractive option as the industry’s scale and global nature favours collaborative structures, where value comes through joint share holdings and strategic alliances,” notes Griffiths. “These relationships are built through shared interests rather than acquisitions. This approach provides a more manageable M&A route than outright takeovers.”
Sustainability anchors BNP Paribas’s global strategic plan, with dedicated focus on accelerating the transition to low-carbon automotive technologies. This commitment is deeply embedded in its investment banking operations, where the EV sector has become a critical area of specialisation.
The bank has built deep expertise across the entire EV value chain – from advising on Indonesian nickel mine acquisitions to structuring EuroGroup’s €432 million listing in Italy. By providing tailored financing and innovative advisory services, BNP Paribas has established itself as a pivotal force in the fast-growing EV ecosystem, shaping the future of sustainable mobility.
