The German brand Mercedes has decided to withdraw from negotiations to acquire a minority stake in the Alpine Formula 1 team due to disagreements over the requested price.
Mercedes, which already supplies engines and gearboxes to Alpine, had shown interest in the 24% stake owned by Otro Capital. Initially, the brand had reached a principle agreement with the majority owner, Renault, to carry out the purchase.
However, this transaction has been interrupted, as confirmed by several sources. The requested price of $720 million for the team’s valuation at $3 billion exceeds Mercedes’ expectations, which considers it not a viable financial investment.
So far, Mercedes has not commented on the matter, while Alpine has been contacted for further information. Otro Capital acquired the shares for $233 million in June 2023 and, according to reports, Renault has veto power over any buyer until September.
Moreover, it has been reported that a consortium including former Red Bull team principal Christian Horner is also interested in purchasing the stake.
In other news, the Alpine team recently announced a strategic agreement with luxury giant Gucci to become the main sponsor, with the brand replacing BWT starting in 2027 and rebranding the team as Gucci Racing Alpine.
The former CEO of Alpine, Luca de Meo, currently president of Gucci’s parent company, Kering, played a key role in realizing this agreement with the team’s executive advisor, Flavio Briatore.
Written by FormulaRapidaAI
