MUMTALAKAT, Bahrain's sovereign wealth fund, has acquired a significant minority stake in the Premo Group, a Malaga-based company and a leading player in the electromagnetic components passive materials for industries such as automotive, telecommunications and electronics.
In recent years, both production and sales of electric vehicles have increased globally, doubling between 2010 and 2018, with more than 2M units sold. This number is expected to reach 10M by 2025.
For the Spanish economy, the automotive industry is a fundamental pillar, although there are doubts as to whether this transition to electric cars is an opportunity or a threat to the millions of jobs generated by the sector.
Despite this, no brand currently produces electric 100% passenger cars in our country.
PREMO GROUP
Premo manufactures in China, Vietnam and Morocco, and employs 1,400 people.
The company is well positioned to benefit from these strong market trends, and has the potential to become a leader in the magnet sector, as well as maintaining a strong position in the automotive sector. As such, the objective of this investment is to strengthen its existing shareholder base, led by the company's management and Minerva Capital, providing long-term support for the company's expansion plans.
It also seeks to capitalise on its leading position as a supplier of inductive components for electrified vehicles, as well as motion tracking technology for other growth markets such as virtual reality and augmented reality.
Established in Malaga in 1962, where it is still headquartered, the group is specialising in the development and implementation of innovative solutions throughout its value chainThe company's activities range from research and development (R&D) and design to industrial manufacturing. Its R & D centres are located in Spain, France, South Korea, China and the United States, The company's innovative activity is demonstrated by its regional representatives in more than 35 countries around the world.
Mumtalakat
In 2005 the Crown Prince of Bahrain sponsored an economic reform workshop open to ministries, government entities and private representatives, from which eight public-private committees were formed for the development, investment and economic growth of local business enterprises.
This gave rise to Mumtalakat, in order to organise and enforce compliance with government initiatives, seek opportunities for value enhancement and improve transparency..
With an annual real GDP growth of 2.51GDP1T, Spain ranks 30th out of the 189 countries reflected in the index. Doing Business from World Bank. The investment in Premo is its second investment in the country.
In 2016, it acquired a 49% stake in the Asturian alloys company, Aleasturspecialising in the manufacture of grain refiners and parent alloys for the aluminium industry.