Mercedes pull out of talks to buy Alpine share over price

Mercedes have pulled out of talks to buy a minority shareholding in the Alpine team because they felt it was overpriced.

The German car company and its F1 boss Toto Wolff had agreed in principle with Alpine owners Renault to buy the 24% stake in their team that is owned by investment group Otro Capital.

But Otro was demanding a price Mercedes considered to be above market value and the deal has collapsed.

Insiders have told BBC Sport Otro wanted $720m (£536m) for its shareholding, a figure that values the team at $3bn (£2.2bn).

Otro paid 200m euros (£171m) for its stake in June 2023.

A source at Renault said: “We understand that discussions have stopped.”

Mercedes and Wolff were both contacted for comment, but were unavailable.

Mercedes considers a figure in the region of $2.2-2.4bn (£1.6-1.8bn) a fair valuation for Alpine, sources have said, based on the usual method for valuing a company. When it is loss-making, as Alpine is, this is based on revenue multiples.

Other recent deals involving F1 team ownership have seen Mercedes valued at £4.6bn and world champions McLaren at £3.5bn.

Both of those teams are profitable, and considerably more successful than Alpine, which is fifth in the constructors’ championship after five races this season, having finished last in 2025.

Other parties interested in buying the Otro shareholding included a group of investors linked to former Red Bull team principal Christian Horner, as well as a number of private equity groups.

However, Renault is said to have decided not to continue with any further talks on the matter.

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.

Alpine this week struck a major title sponsorship deal with the luxury goods brand Gucci.

This was landed by executive adviser Flavio Briatore through his links with Luca de Meo, the former chief executive officer of Renault who is now CEO of Gucci owner Kering.

Mercedes’ interest in a shareholding in Alpine was founded on the idea of a long-term engine supply and the benefits of a number of economies of scale that arise from such links.

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.

Mercedes currently supply world champions McLaren, Williams and Alpine, one of whom will have to find a new engine supply if the plan goes ahead.

Williams are their longest-standing customers, followed by McLaren, while Alpine have taken a Mercedes supply only from this year.