Mercedes withdraws from Alpine F1 team bidding process

Mercedes has withdrawn from the bidding process for a stake in the Alpine Formula 1 team.

The German manufacturer was one of the parties interested in taking on the 24% shareholding in the Alpine squad that is currently owned by American investment group Otro Capital.

But, as first reported by the BBC on Friday and confirmed by sources to The Race, it has now elected to step back from a bid, with the sale price from Otro in excess of what it is willing to pay.

The BBC suggested that Otro, which purchased its stake for around $230 million in 2023, is seeking around $720 million for the stake. This values the team at around $3 billion – a figure in excess of what Mercedes believes it is worth.

With bids understood to have been submitted this week, and Otro’s target higher than what was being offered by Mercedes, the German manufacturer has elected to pull out of discussions rather than return to the table with an increased bid.

Mercedes has been contacted for comment.

The decision by Mercedes not to continue discussions boosts the chances of former Red Bull boss Christian Horner pushing forward with an attempt he is making to purchase the stake.

Horner is seeking a return to F1, with it clear he wants a financial interest in any competitor he joins rather than simply taking on a team principal role.

He has been linked with the Alpine bid for a while now, but has also more recently held discussions with Chinese car manufacturer BYD about helping set up a new squad with it.

Any offer for a takeover of the Otro shareholding must be approved by Alpine’s parent company Renault for now, with it having a veto right over the sale until September this year.

After then, Otro will be free to sell to whoever it wants without needing any approval from Renault.

Speaking in Paris earlier this week, Alpine CEO Philippe Krief was clear that the French car manufacturer was in no rush to make a decision.

“We are not going to do something we are not happy about,” he said.

But he is clear that whatever happens with that Alpine stake, it will not be a first step to Renault selling out totally.

“We will keep the 76% of course,” he said. “In terms of shareholding, we are part of the board and we take some decisions together.

“But anyway, we are keeping the majority [stake] because it's part of the plan for Alpine to continue in F1.”

A potential involvement for Horner comes with it well known he gets on well with Alpine executive advisor Flavio Briatore – who interestingly made several references earlier this week to needing some more experienced hands on board at the F1 squad.

“I’m missing a few quality people with experience, because the team is still very young,” he said.

Mercedes’ interest in a financial stake in Alpine triggered some pushback within the F1 paddock, with McLaren CEO Zak Brown writing to the FIA to urge action in stamping out future co-ownership of teams.

But Mercedes was clear that, if the purchase had gone ahead, it had no plans to make Alpine a junior team and was instead only interested in a financial stake as part of a long-term investment.