Mercedes is no longer pursuing a minority stake in the Alpine F1 team after disagreeing with Otro Capital's asking price.
Mercedes, which is already supplying power units and gearboxes to Alpine, had been interested in acquiring Otro Capital's 24% stake, and the manufacturer had agreed in principle with majority owner Renault to buy them.
However, as first reported by the BBC and verified by Motorsport, that deal has now collapsed. It is understood Otro Capital's $720m asking price, which values the team at $3bn, is well above what Mercedes thinks Alpine's valuation is, and therefore exceeds what it considers a sound financial investment. Insiders at Alpine have also confirmed the talks have stopped.
Mercedes and Alpine have both declined to comment on the matter.
Otro acquired the shares as recently as June 2023 for $233m. Majority shareholder Renault is understood to have the power to veto any buyers of Otro's share until September. A consortium around former Red Bull F1 boss Christian Horner is among the other parties interested in acquiring the share.
This week Alpine announced a landmark deal with luxury giant Gucci for a title sponsorship of the team, with the Enstone-based squad rebranded as Gucci Racing Alpine in 2027.
Gucci will replace water technology BWT as the team's title sponsor and will also take over the team's car livery.
Former Alpine CEO Luca de Meo, who now heads up Gucci's parent company Kering, was a key player in sealing the deal with the team's executive advisor Flavio Briatore.
