Mercedes Withdraws from Alpine Stake Deal Over Valuation

Mercedes has withdrawn from negotiations to purchase a 24 percent stake in the Alpine Formula 1 team, citing a significant gap in valuation expectations as the primary reason. The stake is currently held by the investment firm Otro Capital. Sources indicate Mercedes ended its pursuit after bids were submitted this week, with Otro Capital reportedly seeking approximately 720 million euros for its share, a figure that would value the entire Alpine team at around 3 billion euros. Mercedes reportedly considered a valuation in the range of 2.2 to 2.4 billion euros to be more appropriate.

The German manufacturer's exit from the process is seen as potentially improving the prospects for other interested parties, most notably former Red Bull team principal Christian Horner, who has been linked to a bid for the stake as he seeks a return to Formula 1 in an ownership capacity. Horner is known to have a close relationship with Flavio Briatore, the executive advisor to Renault's CEO who acts as Alpine's de facto team boss. However, Renault Group, which holds the remaining 76 percent of Alpine and retains veto power over any sale of the Otro stake until September 2026, is reported to have...