Mercedes exits talks to buy Alpine stake

Mercedes has ended discussions over a potential investment in the Alpine Formula 1 team after deciding the asking price for a minority stake was too high.

The move brings an end to talks that would have seen the German manufacturer acquire a 24 percent share currently owned by U.S. investment firm Otro Capital.

Otro purchased the stake in 2023 as part of a wider investment package that valued Alpine at around $900 million. 

Three years later, the firm is reportedly seeking about $720 million for the same 24 percent holding, implying a total team valuation close to $3 billion. 

Mercedes did not agree with that assessment and is understood to have valued Alpine closer to the $2 billion to $2.5 billion range. Rather than increase its offer, the company chose to walk away from negotiations.

The proposed deal would not have given Mercedes any control over Alpine’s operations, but it would have created a financial link between two manufacturers competing on the Formula 1 grid. 

Discussions were held with the approval of Renault, Alpine’s parent company, and Mercedes team principal Toto Wolff had reportedly reached a preliminary understanding with Renault before the valuation gap became too large to bridge.

With Mercedes no longer involved, attention now shifts to other interested parties. Former Red Bull team principal Christian Horner is believed to be leading a consortium interested in acquiring the Otro stake. 

Horner has been exploring opportunities within Formula 1 ownership since leaving Red Bull, and Mercedes’ withdrawal removes one of the most significant rivals from the process.

Any sale remains dependent on Renault’s approval. 

The French manufacturer retains veto rights over any transaction involving the Otro shareholding until September 2026, giving it the final say on who can join Alpine’s ownership structure. 

That means Horner’s group, or any other bidder, must still convince Renault before a deal can be completed.

For Alpine, the ownership question remains unresolved while the team continues its efforts to move up the competitive order. 

For Mercedes, the decision allows the company to focus entirely on its own operation as it works to challenge the teams ahead of it in the championship.