Mercedes end Alpine share pursuit as key difference arises

Mercedes has pulled out of its discussions to purchase a minority share in Alpine after a key difference in valuation arose.

According to the BBC, a deal between the German manufacturer and Toto Wolff had been agreed with Alpine's owners, Renault, to buy Otro Capital's 24 per cent share in the Enstone-based F1 operation.

However, Otro was demanding too much for its stake, prompting Mercedes to pull out of the deal after concluding that the asking price was too high.

Otro was reportedly seeking £536 million for its share in Alpine, a figure that values the team at £2.2 billion. When Otro bought its stake in June 2023, it paid just £171 million.

In Mercedes' view, the French team is worth between £1.6 billion and £1.8 billion, making its valuation of Otro's 24 per cent share significantly lower than the asking price.

There has been significant interest in Otro's share in Alpine, according to former Red Bull team principal Christian Horner. 

However, it is believed that Renault, which can veto Otro selling its share until September, has ended any talks for now.

The F1 outfit also announced this week a new major partnership with luxury fashion brand Gucci from 2027, in a long-term deal worth a significant fee.

Alpine became a Mercedes customer outfit from this season, although the Silver Arrows are wanting to reduce its number of customers from three to two by the start of the next regulations.