Mercedes has officially walked away from negotiations to purchase a minority stake in the Alpine Formula 1 team. As highlighted by a recent social media post from @formularacers referencing a BBC Sport report, the Silver Arrows pulled the plug after determining the Enstone-based outfit was severely “overpriced.”
The $3 Billion Disconnect
The core of the collapse lies in a massive discrepancy over what a Formula One team is actually worth in the modern era. New York-based investment group Otro Capital, which purchased a 24 percent stake in Alpine for roughly $230 million in 2023, is currently attempting to cash out. Reports indicate Otro was demanding an astronomical $720 million for its share.
This asking price would value the entire Alpine operation at a staggering $3 billion. Mercedes firmly drew the line, estimating the French squad’s true market value to sit closer to the $2.2 billion to $2.4 billion mark. Rather than return to the table with an increased bid, the German manufacturer entirely exited the discussions.
Mercedes Dodged A Bullet?
For the wider paddock, Mercedes walking away resolves a rapidly escalating political nightmare. McLaren CEO Zak Brown had recently lobbied the FIA to explicitly ban this exact type of cross-team ownership. Brown and other rivals feared Mercedes was attempting to create a “B-team” dynamic, similar to the controversial relationship between Red Bull and Racing Bulls.
While Mercedes team principal Toto Wolff vehemently denied those claims, insisting the purchase was purely a financial investment and a natural extension of Alpine becoming a new Mercedes engine customer this season, the optics were creating severe tension. This withdrawal immediately kills that specific political headache.
With Mercedes out of the picture, the boardroom doors have suddenly swung wide open for another major player. Former Red Bull boss Christian Horner has been actively pushing forward with his own attempt to purchase the available Alpine shares.
While Alpine’s parent company, Renault, retains veto power over any sale until September, Mercedes’ refusal to overpay removes the biggest financial heavyweight from the bidding war. This leaves the ultimate fate of Alpine’s ownership completely up in the air as Otro Capital searches for a buyer willing to meet their extreme valuation.