Toto Wolff will remain as F1 team principal for three more years as INEOS takes up shares within Mercedes as third partner.
In an expected announcement, INEOS has taken up one-third of the shares in Mercedes, which will now be shared equally between them, Wolff and Daimler AG – where the latter has reduced its current 60% shareholding and the Austrian increased his 30%.
INEOS becomes a Principal Partner in this new shareholding as the shares of Niki Lauda gets diluted among all. The team will retain the works outfit status and race Mercedes chassis and power units, with Wolff retaining his team principal role.
It is a three-year deal for Wolff but interestingly, he will have opportunity to transition to a new executive function within the organisation when he wishes to. There will be further alignment of Mercedes’ Benz and AMG divisions along with Applied Science.
Ola Kallenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, commented: “We are delighted to welcome INEOS to our Formula One joint venture as a fellow shareholder. It is a sign of the strength of the organization in Brackley that we have been able to attract prestigious investors in INEOS, who see real potential for the future growth and development of the team.
“We remain firmly committed to Formula One, and the forthcoming cost cap along with the new shareholding structure put us in an even stronger position for continued success. With an even closer alignment to our Mercedes-AMG performance division beginning in 2021, and Toto’s continued leadership in the coming years, the future is bright for Mercedes-Benz in Formula One.”
At the same time, Sir Jim Ratcliffe, Chairman of INEOS, noted: “Big challenges are a core part of our mindset at INEOS and our involvement across a number of different sports demonstrates that we always aim for the very best. When we entered Formula One earlier this year, we chose to do so with a Mercedes team that had set new benchmarks, and since then we have been in discussions about how we could increase our involvement.
“This is a unique opportunity to make a financial investment in a team at the very top of its game, but which still has rich potential to grow in the future. We could not wish for better partners than Mercedes-Benz, and a team of proven winners led by Toto,” he summed up as INEOS gets a larger role than a sponsor from 2021 onward.
And finally, Wolff, added: “I am pleased to begin this new chapter for the Mercedes-AMG Petronas F1 Team. This team is like a family for me. We have been through so many highs and lows together that I cannot imagine working with a better group of people in this sport – and I am very happy to continue together into this new era.
“This new investment from INEOS confirms that the business case for Formula One teams is robust and sends an important signal of confidence in the sport after a challenging year. I am excited to welcome Jim, Andy and John to the team as co-owners: they have built one of the most profitable companies in the world, they embody the true spirit of entrepreneurship and their expertise will strengthen our board in the years ahead.
“In parallel, it is a privilege to continue my partnership with Ola, Markus Schafer and Mercedes-Benz for the coming years. We are proud to have added to the brand’s prestigious motorsport heritage since 2010 and we share the ambition to grow the organisation further in the years to come.”
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