Far-reaching decision in Formula 1: Mercedes has buried its plans to acquire shares from competitor Alpine. The reason: the price. McLaren CEO Zak Brown should be particularly happy about this development.
Formula 1 team Alpine will not become Mercedes’ “little brother” after all. As the “BBC” reports with reference to several sources, Toto Wolff and Co. have given up the plan to buy the investment group Otro Capital’s shares in the French team. The company currently holds 24 percent of the racing team, but would like to sell it.
According to the BBC, Toto Wolff and Alpine owner Renault had already agreed on the deal, but in the end Otro Capital demanded too high a price. The Silver Arrows then backed out and canceled the purchase.
Mercedes would have paid up to 600 million
According to the report, the investment group demanded a whopping $720 million in return for its 24 percent stake. It would have been a real mega deal for the company. The acquisition of the shares cost Otro Capital just around $230 million in 2023.
“We understand that the discussions have ended,” the BBC quoted an unnamed source at Renault as saying. Mercedes and Toto Wolff did not initially respond to a request from the British broadcaster.
According to the BBC, Mercedes would have been willing to pay around $550 to $600 million for the 24 percent. In the eyes of the Silver Arrows, this was equivalent to a “fair valuation” of the shares, it is said.
Renault puts investment group on the chain
What will happen next in the matter remains to be seen. According to the BBC, Renault wants to put the sale of the Otro shares on hold for now. The French company has the right to veto the sale of the Otro shares until September. This right was reportedly used to block a sale of the shares to an investment group led by ex-Red Bull team boss Christian Horner.
McLaren boss Zak Brown, among others, should be particularly happy about this latest development. He has warned several times about the consequences if a team – as has been the case with Red Bull Racing and the Racing Bulls for years – also has a hand in someone else’s garage. In his eyes, this endangers the integrity of the entire sport, he wrote a few weeks ago in a letter to FIA boss Mohammed bin Sulayem, which was published by the “The Race” portal.
