Mercedes explores strategic stake in Alpine F1 team

Mercedes is in talks to acquire a minority stake in the Alpine Formula 1 team, a move driven by long-term strategic and financial considerations for the manufacturer rather than a personal venture for team principal Toto Wolff. The potential investment, which is still under evaluation and faces competition from other interested parties, could solidify Alpine's position as a Mercedes customer team amid plans to reduce engine supply commitments in the future.

Why it matters:

A financial stake in Alpine would give Mercedes greater influence and security with one of its customer teams at a time when the manufacturer is looking to streamline its engine supply portfolio. For Alpine, securing a committed partner like Mercedes could provide stability and a stronger technical link, while the sale would allow current minority investor Otro Capital to exit at a premium valuation.

The details:

• The available stake is the 24% share owned by Otro Capital, a consortium that includes celebrities like Ryan Reynolds and Michael B. Jordan, which is now looking to sell.
• Mercedes' Strategic Motive: The interest is from Mercedes as a corporate entity, not from Toto Wolff personally. The primary goal is to secure a stable, long-term relationship with a customer team.
• Pure Financial Play: Sources indicate the deal under discussion is a pure financial investment and is not a step toward creating a junior or sister team structure.
• Engine Supply Context: Mercedes currently supplies power units to four teams: itself, McLaren, Williams, and Alpine. Team principal Toto Wolff has stated the ideal number is "between two and three" for the next regulatory cycle, implying one customer will be dropped.
• An investment in Alpine would make it the logical partner to retain, potentially leaving Williams and McLaren to compete for the remaining customer slot.

What's next:

The negotiations are ongoing and uncertain, with multiple parties still in the running. Renault, Alpine's parent company, holds veto power over any sale of Otro's stake until at least September 2024.

• Alpine executive advisor Flavio Briatore confirmed in China that Mercedes is one of "three or four potential buyers."
• While Mercedes is seriously evaluating the opportunity, internal sources stress it is only a consideration at this stage, not a guaranteed deal. The final outcome will depend on Renault's approval and the competing offers on the table.