As Formula 1’s rapidly evolving business climate changed again, Mercedes abandoned efforts to buy a minority stake in Alpine. The German company had been in talks regarding its intention to buy 24% of Alpine owned by Otro Capital; however, the talks fell apart when a significant difference arose over valuation. It is said that Otro wants nearly $720 million for its shares in Alpine, meaning that the total value of Alpine amounts to about $3 billion. Mercedes did not consider that sum reasonable and therefore decided not to raise its bid. This development means that one of the largest companies involved in the bidding war is out of the race.
The company regarded this deal merely as a financial investment and not an attempt at creating a junior team setup. Indeed, team principal Toto Wolff had been insisting on that point throughout the negotiations. Mercedes only entered the talks in order to make bids this week. However, they found the valuation unreasonable and thus withdrew from the negotiations.
Horner Gains Ground as Mercedes Steps Back from Alpine Bid
Alpine ownership question remains open
The attention now moves to Alpine, and how their future will be after they have managed to acquire a 24% share from Otro Capital. This investment company bought out its stake at an estimated price of $230 million in 2023. They are now expecting much more than this for their investment. Renault still has a majority of 76%, and they will not let go of it anytime soon.
For now, Renault also has the right to veto on any decision about selling the team. Their authority will last until September 2026. Alpine CEO, Philippe Krief, has expressed his thoughts on the matter and that they are not pressured into making a deal, but they can make a choice based on whether the partner meets the requirements of the team.
Ownership debate continues inside Formula 1
Mercedes’ interest in Alpine had already sparked discussion across the Formula 1 paddock. Some rivals expressed concerns about the growing trend of shared ownership and strategic links between teams. McLaren CEO Zak Brown publicly called for tighter oversight of such arrangements, arguing that the sport should guard against conflicts of interest.
Mercedes insisted that its proposed involvement was purely financial. The manufacturer had no intention of turning Alpine into a feeder operation. Nevertheless, the debate highlighted wider concerns about team independence as Formula 1 franchise values continue to rise. Alpine’s reported $3 billion valuation is one of the clearest signs yet of the growing financial strength of the sport.
Horner emerges as a leading contender
Now that Mercedes has withdrawn, the focus has shifted towards Christian Horner who previously was in charge of the Red Bull team. The current owner of the team had been looking into different methods to regain control in Formula 1 and seems to have shown interest in owning his own part instead of becoming a manager in the organization. It is already known that he has been considering the possibility of joining Alpine and now that there is one less competitor, the chances seem even better.
But a number of issues remain. Any deal would require consent from Renault, at least until the veto rights of the company expire. According to some reports, the automobile manufacturer will not support the efforts to bring Horner on board. Meanwhile, Horner himself is considering other options that include joining a possible Formula 1 project led by BYD. Therefore, it can be concluded that the question of ownership has yet to be solved.
