MERCEDES PULLS OUT OF ALPINE F1 SHARE TALKS OVER ASKING PRICE

Mercedes has withdrawn from negotiations to acquire a minority stake in the Alpine F1 team, citing Otro Capital’s steep asking price. The German manufacturer had initially agreed in principle with Renault to purchase Otro Capital’s 24% share, which Otro only acquired in June 2023 for $233 million. Now, Otro Capital is reportedly seeking $720 million for the stake, an valuation of the team at $3 billion, which Mercedes deems financially unsound.

This collapse leaves the future of the minority stake uncertain, though a consortium led by former Red Bull F1 boss Christian Horner remains interested. Majority owner Renault holds veto power over any buyers until September. Meanwhile, Alpine recently secured a landmark title sponsorship with luxury brand Gucci, slated to rebrand the team as Gucci Racing Alpine in 2027. This financial dispute highlights the ongoing high-stakes valuation game in Formula 1 as team values soar, potentially impacting Alpine's search for a strategic partner.