Mercedes pull out of talks to buy minority stake in F1 rivals Alpine after deeming valuation to be too expensive | F1 News

Mercedes have withdrawn from negotiations to purchase a minority stake in rival F1 team Alpine, believing the valuation of the share, owned by US investment firm Otro Capital, to be too expensive.

It was revealed earlier this year that the Silver Arrows were among a number of suitors looking to purchase the 24 per cent stake in the Enstone team.

Sky Sports understands that Mercedes believe Otro’s valuation of the share, which is in the region of €700m (£606.3m) is excessive.

The Silver Arrows value the team at €3bn (£2.6bn). Otro purchased their stake in Alpine back in 2023 for €200m (£173.2m) while the Renault Group owns the remaining 76 per cent stake in the team.

Otro Capital have previously worked with the NFL side the Dallas Cowboys.

The investment firm are believed to have backers who include Rory McIlroy, Anthony Joshua and Trent Alexander-Arnold, and they are expected to double or triple their earnings from the investment they made in 2023.

Sky Sports also understands that a consortium associated with former Red Bull team principal Christian Horner remains one of a number of potential groups who are still interested in purchasing a stake in the team.

Reports first emerged earlier this year that Mercedes, Alpine’s engine suppliers for the 2026 season, were keen to invest in the Oxfordshire-based F1 team.

The news prompted Alpine executive advisor Flavio Briatore to issue comment on the matter at the Chinese Grand Prix – although he did keep his cards close to his chest.

“Every day is a new situation,” Briatore said. “I don’t know what is the latest one, but what I say is that I know it’s a negotiation with Mercedes, not with Toto [Wolff, personally], with Mercedes, and we [will] see.

“In this moment, we have three or four potential buyers. Don’t forget, we’re talking about the Otro shares, nothing to do with Alpine.

“It’s the share owned by this hedge fund, it’s called Otro, American fund. They want to sell the 24 per cent and a few candidates are ready to do the deal.”

In March, a spokesperson from the Silver Arrows said: “Mercedes is a key strategic partner of Alpine and we are being kept apprised of the latest developments,” a statement from the Silver Arrows said in March.

However, McLaren CEO Zak Brown was critical of the potential purchase, criticising the prospect of multi-team ownership in F1 in April.

The American executive has been a critic of what he calls ‘A-B teams’ for some time, explaining that he feels the collaboration between teams can “run a high risk of compromising the sporting integrity of the sport”.

“We have seen fastest laps from one team, Daniel Ricciardo [when driving for Racing Bulls] take a point away from McLaren to help Max [Verstappen] and Red Bull [at the 2024 Singapore GP],” Brown explained to Sky Sports News.

“We have seen IP transfer from one team to another. We’ve seen staff move from one team to another overnight where I have to wait until 2028. So they get a sporting advantage there, sometimes that comes with some remuneration – they’re not going to have to write a cheque, so it’s a cost-cap advantage.”

He added to those comments again at a McLaren media event later in the year.

“In my view, all 11 teams should be absolutely as independent as possible,” Brown said.

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