Full Breakdown
Mercedes Withdraws from Alpine Share Deal Amid Valuation Dispute
5/30/2026, 12:37:57 AM
Deal Collapse Over Valuation
Mercedes-Benz, represented by team principal Toto Wolff, terminated negotiations to acquire a 24 % minority stake in the Alpine Formula 1 team. The decision followed a disagreement with investment group Otro Capital, which sought $720 million for the share—a price Mercedes deemed above market value. Sources confirm that discussions have ceased, ending a potential partnership that would have linked the German manufacturer more closely with Alpine’s engine supply.
Background & Context
Alpine, owned by Renault, has been reshaping its commercial profile. In June 2023, Otro Capital purchased its 24 % stake for €200 million. The team recently secured a title-sponsorship agreement with luxury brand Gucci, brokered by executive adviser Flavio Briatore. Renault retains a veto over any sale of the Otro shares until September, a right it could exercise to block buyers linked to former Red Bull principal Christian Horner.
Key Figures & Groups
- Mercedes-AMG Petronas – led by Toto Wolff, current supplier to Alpine.
- Renault – parent company of Alpine, holder of the veto.
- Otro Capital – investor seeking $720 million for its stake.
- Christian Horner-linked investors – among alternative bidders.
- Private-equity groups – also expressed interest in the shareholding.
Data & Statistics
- Stake size: 24 % of Alpine.
- Asking price: $720 million (£536 million), implying a $3 billion (£2.2 billion) team valuation.
- Mercedes’ fair-value estimate: $2.2-2.4 billion (£1.6-1.8 billion).
- Current Mercedes customer teams: McLaren, Williams, Alpine.
- Planned reduction: two customer teams by the 2031 engine-regulation rollout.
Official Statements & Responses
A Renault source confirmed the cessation of talks, stating, “We understand that discussions have stopped.” Mercedes-related sources indicated that the German firm considers a $2.2-2.4 billion valuation appropriate based on revenue multiples. Both Mercedes and Wolff declined to comment when approached for comment.
Criticism & Opposition
Industry observers noted that the $720 million demand exceeded typical multiples for loss-making teams, casting doubt on the price’s fairness. Renault’s veto power further limited potential buyers, particularly those with ties to Horner, suggesting strategic resistance to a shift in ownership that could affect the team’s future direction.
Conflicting Reports & Gaps
The valuation gap—$3 billion versus $2.2-2.4 billion—remains unresolved, and no official comment from Mercedes or Wolff is available to clarify the firm’s stance. Additionally, the impact of Mercedes’ plan to cut its customer-team roster on Alpine’s engine supply remains unspecified.
Verbatim Quotes
- “We understand that discussions have stopped.” — Renault source, BBC Sport
- “8bn) a fair valuation for Alpine, sources have said, based on the usual method for valuing a company.” — Mercedes source, BBC Sport
- “Mercedes are planning to reduce their number of customer teams in F1 to two in time for the the new engine regulations that are due to come into force by the latest in 2031.” — BBC Sport
- “Renault has a power of veto over any sale of the Otro shares until September, and would have used that to block any sale to a group that had links with Horner.” — BBC Sport
- “Alpine this week struck a major title sponsorship deal with the luxury goods brand Gucci.” — BBC Sport
What’s Next
Renault must decide whether to exercise its veto before the September deadline, while Mercedes prepares to streamline its customer-team portfolio ahead of the 2031 engine regulations. The outcome will shape Alpine’s ownership structure and its long-term engine partnership with Mercedes.
