Asia Tech Wire (June 28) -- Oil giant Saudi Aramco will buy a 10% stake in HORSE Powertrain Ltd., the powertrain joint venture between automakers Geely and Renault, according to Bloomberg.

The deal values HORSE at about 7.4 billion euros ($7.9 billion), the report said, citing people familiar with the matter.

The 10% is below Saudi Aramco's previous target and the deal is due to close by the end of this month, the people said.

Saudi Aramco signed a letter of intent last March to invest cash for a minority stake in HORSE.

Formally launched in late May and headquartered in London, the joint venture has an expected annual revenue of about 15 billion euros and an annual production capacity of about 5 million powertrain units.