Mercedes Withdrawal from Alpine Deal Sparks New Wave of Speculation in Formula 1

German automaker Mercedes-Benz and its Formula 1 team, Mercedes-AMG, have withdrawn from negotiations to acquire a 25% stake in the Alpine Formula 1 team due to financial disagreements, according to a Saturday report by BBC.

When contacted by AFP on Saturday, a spokesperson for Mercedes-AMG Formula 1 declined to comment on the reports.

Stalled Negotiations

Mercedes-Benz and its team principal, Austrian Toto Wolff, had been negotiating for months to acquire a 24% stake in the British-French Alpine team, which has its main base in Viry-Châtillon near Paris and Enstone in northwest London.

French automotive giant Renault holds 76% of Alpine Formula 1 shares, while New York-based investment firm Otro Capital owns the remaining 24%.

Valuation Dispute

According to BBC, citing internal sources, Otro demanded a price above market value, leading Mercedes to prefer walking away from the table. The US fund sought to sell its stake for €618 million, valuing Alpine at €2.5 billion. Otro had acquired the stake in 2023 for roughly one-third of that asking price.

Alpine, which finished last in last year's Constructors' Championship, currently ranks fifth this season but operates at a loss. Mercedes estimates the team's value between $2.15 billion and $2.42 billion.

Renault's Veto Power

A source within Renault told BBC that they "understood the negotiations had collapsed," with the French manufacturer exercising a veto right until autumn to block any potential talks with other investors.

Mercedes currently supplies engines to McLaren and Williams, as well as Alpine since this season.

Flavio Briatore and Gucci

Italian businessman Flavio Briatore took over Alpine, which is represented by French driver Pierre Gasly and Argentine driver Franco Colapinto, after finalizing the process of bringing Gucci on as the team's main sponsor for 2027.

Briatore has a close relationship with his compatriot Luca de Meo, former Renault team principal and current CEO of luxury group Kering, which owns Gucci, since last year.

McLaren's Criticism

In late April, McLaren CEO Zak Brown criticized the financial relationships between competing teams, raising further questions about transparency in the championship.