Mercedes Walks Away From Alpine Stake Acquisition Due To Valuation Disagreement

Mercedes is no longer in the running to acquire a minority stake in the Alpine Formula 1 team after talks collapsed over price.
The German manufacturer had been interested in purchasing Otro Capital’s 24% share in the Enstone-based outfit, having already agreed in principle with majority owner Renault to proceed.
However, the deal has since fallen apart, with Otro Capital’s $720 million asking price understood to be the central sticking point in the negotiations.
That valuation places the Alpine team at $3 billion, a figure Mercedes reportedly considers well above what the team is actually worth as a financial investment.
Insiders at Alpine have confirmed that the conversations between the two parties have now ceased, closing the door on a deal that once appeared close to completion.
Mercedes already has an existing commercial relationship with Alpine, supplying the team with both power units and gearboxes, which had made the potential acquisition appear a natural progression.
Otro Capital originally acquired its 24% stake in June 2023 for $233 million, meaning the group is seeking a return of more than three times its initial outlay.
Majority shareholder Renault is understood to retain the power to veto any prospective buyers of Otro’s share until September, which limits how quickly a new deal can be struck.
A consortium involving former Red Bull boss Christian Horner is among the other parties reported to be interested in acquiring the stake from Otro Capital.
Both Mercedes and Alpine have declined to comment publicly on the breakdown of the discussions.
Meanwhile, Alpine has secured a significant new commercial partnership, with luxury brand Gucci announced as the team’s title sponsor from 2027 onwards.
The Enstone squad will be rebranded as Gucci Racing Alpine next season, with Gucci replacing water technology company BWT as the team’s primary title sponsor.
Gucci will also take over responsibility for the team’s car livery, marking a significant visual transformation for the outfit heading into the 2027 campaign.
Former Alpine CEO Luca de Meo, who now leads Gucci’s parent company Kering, played a key role in brokering the sponsorship deal alongside the team’s executive advisor Flavio Briatore.
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