Mubadala Investment Company, an Abu Dhabi strategic investment fund, and Nexen Tire, a leading global tyre manufacturer, have signed a memorandum of understanding to explore strategic partnership opportunities.

Mubadala has made a direct investment into Nexen as part of the agreement.

Khaldoon Khalifa Al Mubarak, managing director and Group CEO of Mubadala, and Travis Kang, CEO of Nexen Tire, signed the MoU in Abu Dhabi, UAE recently.

"As a high-performing business with significant global growth potential, Nexen Tire represents an interesting investment opportunity for Mubadala Investment Company. Our investment approach prioritises partnership with the best-in-class global organisations as a key driver of creating lasting value for our shareholder. We look forward to exploring opportunities with Nexen Tire," said Waleed Al Mokarrab Al Muhairi, deputy Group CEO and chief executive officer of Alternative Investments and Infrastructure at Mubadala.

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 tyre 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 investment as well as wider co-operation in Nexen Tire's overseas expansion. The parties will also collaborate in other areas such as future automotive technology linked to the Fourth Industrial Revolution.

Nexen Tire is one of the fastest-growing companies in the automotive industry, with a compounded annual growth rate of 15 percent over the past 10 years. The company sells 40 million tyres to more than 140 countries annually, with more than 4 million tyres sold throughout the Middle East. - TradeArabia News Service