Mercedes Abandon Alpine Share Talks Over Price Dispute
Mercedes have withdrawn from negotiations to acquire a minority stake in the Alpine Formula 1 team due to concerns over pricing. The German car manufacturer and F1 team principal Toto Wolff had reached a preliminary agreement with Renault, Alpine's owner, to purchase a 24% stake currently held by investment group Otro Capital. However, discussions faltered when Otro demanded a price of $720 million (£536 million) for its share, a valuation that Mercedes deemed excessive. This figure places the overall value of Alpine at $3 billion (£2.2 billion). Insiders revealed that Otro had initially invested €200 million (£171 million) for their stake in June 2023. A Renault source confirmed: "We understand that discussions have stopped." Mercedes considers a valuation of approximately $2.2-2.4 billion (£1.6-1.8 billion) fair for Alpine, especially given its current loss-making status. Recent valuations for other F1 teams show Mercedes valued at £4.6 billion and McLaren at £3.5 billion, both of which are profitable and outperforming Alpine, who is currently fifth in the constructors' championship. Other interested parties for the Otro stake include investors associated with former Red Bull team principal Christian Horner, as well as several private equity groups. However, Renault holds a veto power over any sale until September, which would block any sale to those with ties to Horner. This week, Alpine secured a significant title sponsorship with luxury brand Gucci, facilitated by executive adviser Flavio Briatore through connections with former Renault CEO Luca de Meo, now CEO of Kering. Mercedes' interest in Alpine was tied to long-term engine supply strategies and potential economies of scale, as they aim to reduce their customer teams ahead of new engine regulations by 2031. Currently, they supply McLaren, Williams, and Alpine, with one team needing to find a new engine supplier if changes go through.
Source: BBC Sport - 2026-05-29