Mercedes has ended its pursuit of a 24% stake in Alpine after a valuation impasse, halting talks with shareholder Otro Capital despite advanced progress with parent company Renault.

Otro Capital sought £536 million for the holding, implying a £2.2 billion valuation. Mercedes assessed Alpine closer to £1.6–1.8 billion, creating a gap too wide to bridge.

Renault retains veto rights on any sale until September 2024 and has paused discussions, leaving Alpine’s near-term ownership structure unchanged.

Otro first acquired its share in June 2023 for £171 million, underlining how sharply valuations inflate as Formula 1 franchise values rise and commercial prospects improve.

Former Red Bull team principal Christian Horner recently noted strong interest in Otro’s holding, though Renault’s control over timing and terms ultimately dictates the process.

For Mercedes, the acquisition would have expanded strategic influence over a customer operation. Instead, the manufacturer plans to reduce customer teams from three to two ahead of the next rules cycle.

That shift dovetails with the incoming 2026 regulations and an evolving engine programme, concentrating resources on fewer partners and reinforcing its core works effort.

Alpine strengthens its commercial base with a Gucci partnership from 2027, while operating as a Mercedes-powered customer team this season under the current supply framework.

With the deal off, Alpine continues under existing ownership. Options may reopen once the veto expires, with valuation realism and strategic fit likely to shape any renewed talks.

Toto Wolff’s involvement underlines Mercedes’ strategic intent, but the decision reflects strict value discipline. The team prioritizes competitive investment over paying a premium for equity exposure.

Fewer customer teams could enable deeper technical collaboration and more focused resource deployment. Engine supply choices across the midfield may shift as 2026 approaches.

Attention now turns to 2026 preparations, Alpine’s development trajectory, and whether market valuations recalibrate enough to revive discussions after the veto window closes.

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Daniel Miller

Daniel Miller reports on Formula 1 Grand Prix weekends with race-day analysis, team-radio highlights, and point-standings updates. He explains power-unit upgrades, aerodynamic developments, and driver rivalries in straightforward, SEO-friendly language for a global F1 audience.