Saudi Arabia’s sovereign wealth Public Investment Fund (PIF) has reportedly agreed to sell its stake in McLaren Group, the carmaker and Formula 1 (F1) team owner, to Bahrain state investment fund Mumtalakat.

The deal, announced by Sky News yesterday (June 21), will see Mumtalakat’s 62.55% controlling stake in the group expand further, strengthening its position within the company.

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PIF, one of the most prominent sports investors, and global investment firm Ares Management acquired the preference shares in McLaren worth £400 million ($511 million) in July 2021.

It is understood that no additional capital will be injected into McLaren, but the group will plan further fundraising.

Earlier this year, McLaren acquired a £70 million funding boost from investors in the first stage of its broader restructuring plan to lead it into the electric vehicle era.

The carmaker was forced to delay delivery of its Artura hybrid supercar last year after being hampered by technical problems and supply chain issues.

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Most of the new funds are earmarked for investment into McLaren Automotive. Its McLaren Racing subsidiary, meanwhile, is now a standalone entity within the group and does not require additional financial support.

Founded in 1963 by Bruce McLaren, the company owns one of the most famous names in British motorsport. It has won 180 Grands Prix, three Indianapolis 500s, and the Le Mans 24 Hours on its debut.

PIF’s exit as a McLaren shareholder comes after the shock announcement that golf’s PGA Tour and DP World Tour (formerly European Tour) had agreed to merge their commercial operations under a new entity in which the Saudi fund will be the primary investors.

The fund also sent shockwaves through English soccer after buying Newcastle United in late 2021. Since the takeover, Newcastle has risen through the league to clinch a return to the Champions League next season after a 20-year absence.