Mercedes has decided to halt negotiations aimed at acquiring a minority stake in Alpine, bringing an end to discussions that could have strengthened the relationship between the two Formula 1 organizations.
The German manufacturer and team principal Toto Wolff had reportedly reached a preliminary agreement with Renault’s ownership group regarding the acquisition of the 24% stake currently held by investment fund Otro Capital. However, the talks ultimately collapsed due to a significant difference in valuation between the parties involved.
Valuation dispute ends negotiations
According to reports, discussions stalled after Mercedes concluded that the asking price demanded by Otro Capital was substantially higher than the team’s current market value.
Sources close to the negotiations indicated that Otro was seeking approximately $720 million for its 24% shareholding. Such a figure would imply a total valuation of around $3 billion for the Alpine Formula 1 team.
For comparison, Otro Capital acquired the same stake in June 2023 for approximately €200 million, highlighting the substantial increase in value being sought during the latest negotiations.
Mercedes, however, reportedly viewed a valuation between $2.2 billion and $2.4 billion as a more realistic assessment. That estimate was said to be based on revenue multiples typically applied to companies that are not currently generating profits, a category into which Alpine still falls.
The German manufacturer’s evaluation also reflected Alpine’s recent sporting performance. While the team currently sits fifth in the Constructors’ Championship after the opening races of the season, it finished at the bottom of the standings the previous year.
Official positions and other interested parties
A Renault spokesperson confirmed that the discussions had come to an end, although neither Mercedes nor Toto Wolff have publicly commented on the matter.
Several other groups had reportedly expressed interest in acquiring Otro Capital’s stake. Among the names linked to the process were investor groups associated with former Red Bull team principal Christian Horner, as well as various private equity funds.
However, Renault retains veto rights over any sale until September and is understood to have used that authority to block transactions involving parties connected to Christian Horner.
Why Mercedes was interested in Alpine
Mercedes’ interest was driven by more than a simple financial investment. The company reportedly saw strategic value in strengthening its long-term engine partnership with Alpine while also creating potential operational and commercial synergies between the two organizations.
The German manufacturer is already planning ahead for the next generation of Formula 1 power unit regulations expected in 2031. As part of that strategy, Mercedes intends to reduce its customer team portfolio from three to two.
At present, Mercedes supplies power units to McLaren, Williams and Alpine. Under the future plan, one of those teams would eventually need to find an alternative engine supplier.
Alpine is also the newest addition to Mercedes’ customer roster, having only switched to Mercedes power units this season following Renault’s decision to discontinue its own Formula 1 engine program.
Alpine continues to build momentum
While the failed negotiations close one chapter, Alpine has recently enjoyed positive developments away from the track.
Earlier this week, the team announced a major title sponsorship agreement with luxury fashion brand Gucci. The deal was reportedly facilitated through the relationship between executive advisor Flavio Briatore and Luca de Meo, the former Renault CEO who now leads Kering, the parent company that owns Gucci.
The collapse of the Mercedes investment talks therefore appears unlikely to disrupt Alpine’s broader strategy. Instead, it marks the end of one potential avenue for Mercedes to expand its influence within the Formula 1 paddock through technical and commercial partnerships, while Alpine continues its efforts to strengthen its position under Renault’s ownership and leadership structure.
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