Negotiations between Mercedes and investment group Otro Capital regarding the sale of a 24% stake in the Alpine Formula 1 team have reportedly come to an end after the two parties failed to agree on the value of the Enstone-based outfit.
In recent weeks, reports had suggested that Mercedes and Otro Capital had reached an agreement in principle for the transfer of the minority shareholding. The potential deal generated considerable discussion throughout the Formula 1 paddock, particularly regarding whether Mercedes should be allowed to hold an ownership stake in another team.
The debate also reignited conversations about multi-team ownership structures within Formula 1, including the existing relationship between Red Bull and Racing Bulls.
Major disagreement over Alpine’s valuation
According to a report from the BBC, discussions between Mercedes and Otro Capital have now collapsed due to a significant difference in opinion regarding Alpine’s market value. The American investment fund reportedly demanded $720 million for its 24% shareholding in the team. Mercedes, however, was only willing to invest up to $576 million, creating a gap that proved impossible to bridge.
The disagreement effectively ended negotiations, with neither side willing to compromise on its valuation.
How much is Alpine really worth?
The failed talks highlight the vastly different assessments made by the two parties.
According to Otro Capital, Alpine’s total value stands at approximately $3 billion. Mercedes, on the other hand, reportedly believes the team is worth somewhere between $2.2 billion and $2.4 billion.
The difference is particularly notable considering that in June 2023, Otro Capital acquired its 24% stake in Alpine for €200 million. Another important factor in the negotiations is Renault’s position. The French manufacturer retains veto rights over any transaction involving Otro Capital’s shareholding until September, giving it significant influence over any potential ownership changes.
For now, Renault appears unwilling to reopen discussions regarding the sale. According to the BBC, the company is particularly determined to use its veto power to prevent any takeover attempt involving groups perceived to be close to Christian Horner.
As a result, Mercedes’ interest in acquiring a stake in Alpine appears to have come to an end, at least for the time being, while questions surrounding the future ownership structure of the Formula 1 team remain unresolved.
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