Mercedes Ends Alpine Share Pursuit Over Valuation Disagreement

Mercedes has abandoned its pursuit of a minority stake in Alpine after a fundamental split over the French team's valuation, with Otro Capital demanding nearly three times what it paid for the shares just two years ago.

A deal between Mercedes and Alpine's parent company Renault had been agreed in principle, but collapsed when Otro – which owns 24% of the Enstone-based outfit – refused to lower its asking price.

Why it matters:

The failed deal means Alpine remains under full Renault control for now, and Mercedes will continue supplying engines to three customer teams – a situation it wants to reduce by 2026. The valuation gap also highlights how F1 team valuations have soared since the sport's commercial boom under Liberty Media.

The details:

• Otro Capital bought its 24% stake in Alpine in June 2023 for £171 million.
• It was seeking £536 million for the same shares, implying a total team valuation of £2.2 billion.
• Mercedes assessed Alpine's worth at between £1.6 billion and £1.8 billion, making Otro's asking price roughly £400 million too high.
• Renault has the right to veto any sale of Otro's shares until September, and has reportedly ended all talks for now.
• Former Red Bull team principal Christian Horner noted there has been significant interest in Otro's stake from other parties.
• Alpine announced a major new partnership with luxury fashion brand Gucci starting in 2027, a long-term deal worth a significant fee.

The German manufacturer had agreed in principle with Renault to acquire Otro's shares, but walked away after concluding the price did not reflect market reality. Otro's valuation would have made Alpine one of the most expensive F1 teams in history, comparable to the $2.1 billion price tag on a minority stake in Ferrari's F1 business in 2023.

What's next:

• Renault can block any Otro sale until September, but alternative buyers could emerge once that veto expires.
• Mercedes remains committed to reducing its customer team count from three to two by the start of the next regulations in 2026, but this deal's failure leaves that plan in limbo.
• Alpine will continue as a Mercedes customer this season, but its long-term engine supply and ownership structure remain uncertain.

The collapse of the negotiation shows that while F1 team valuations have skyrocketed, sellers and buyers still disagree on just how high the ceiling is.