Mercedes exits Alpine stake race as Christian Horner hurdle removed

Mercedes has stepped out of the bidding war for the Alpine F1 stake currently held by Otro Capital.

Mercedes was one of the parties interested in the stake, but with sources indicating the figures of valuation being discussed were not in line with expectations, the German manufacturer has exited discussions.

Mercedes withdraws from Alpine stake bidding process

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• Mercedes has withdrawn from discussions to buy Otro Capital’s 24% stake in Alpine.
• Valuation expectations are understood to have been a key factor behind Mercedes ending its pursuit.
• The move potentially strengthens Christian Horner’s position in the race for an Alpine ownership stake.

First reported by the BBC on Friday evening, sources with knowledge of the situation have confirmed to PlanetF1.com that Mercedes and the Renault Group have ended discussions about the 24 per cent stake in the team currently held by New York-based investment company Otro Capital.

As revealed by PlanetF1.com, company documents filed in the UK show that Otro Capital cannot freely transfer its 24 per cent holding until September 2026, with Renault believed to have rights over any potential transaction, including approval of prospective buyers, until that time.

Sources have indicated that this week saw the lodging of bids for the 24 per cent minority shareholding in the Alpine F1 team, with Mercedes calling time on discussions following this, as the valuation of the stake is said to be beyond the figure Mercedes had in mind; the BBC reports Otro Capital is looking for $720 million for its stake, a significant uptick from its $215 million investment in mid-2023, which would value at Alpine at around $3 billion.

According to PlanetF1.com’s recent team valuation calculations, the stake would be worth circa $620 million on an overall team valuation of $2.6 billion, meaning Otro Capital is reportedly seeking circa $100 million more than this as it naturally looks to maximise value on exit.

However, with Renault focused on ensuring incoming shareholders’ values align with the F1 team as it seeks a true racing partner in line with its strategic direction, as opposed to a passive investor, the preferred options for the potential sale had narrowed to the two with F1 experience: the bids of Mercedes, and of Christian Horner, the former Red Bull CEO and team boss.

Since his axing from Red Bull, Horner has spoken of his “unfinished business” in F1 as he seeks an ownership position for his return to the sport.

The separate bids of Horner and Mercedes, as revealed in March, are believed to have been in a similar figure range to each other, and would have valued the team at around £2.5 billion.

With Mercedes out of the running, this would suggest that a major hurdle has been cleared for Horner in his pursuit of a return to the grid, particularly with the British executive known to enjoy a close relationship with the de facto Alpine F1 boss Flavio Briatore, whose official job title is that of executive advisor to Renault CEO Francois Provost.

Horner and Briatore are known to have spent time together recently at the Monaco Formula E event, with the two enjoying a close personal relationship as well as professional camaraderie.

With Renault holding veto rights over any potential transaction until September, the BBC has reported that the French manufacturer has vetoed any bid involving Horner. PlanetF1.com has been unable to establish the veracity of this specific claim at the time of publishing.

Following this date in September, Otro Capital will then have greater control over the sale of its shares, without necessarily needing any oversight from Renault, meaning bids from F1-adjacent parties could become less attractive as Otro Capital seeks to maximise its return.

However, Alpine is not the only option currently on the table for Horner, with PlanetF1.com recently revealing that he has met with BYD vice-president Stella Li about a potential 12th team entry for the Chinese manufacturer.

Mercedes’ confirmed withdrawal from the Alpine stake race also puts an end to the immediate urgency surrounding a topic that had been raised as a concern by McLaren CEO Zak Brown in recent weeks.

With Brown long criticising the existence of common team ownership models such as Red Bull and Racing Bulls being owned by Red Bull GmbH, the potential addition of a new common team ownership dynamic of Mercedes at Alpine had reignited the topic, as Brown recently wrote a letter to FIA President Mohammed Ben Sulayem expressing his concerns about the ownership model and urging rule changes to remove the possibility.

However, Mercedes’ CEO and team boss Toto Wolff had ruled out the scenario of Alpine being turned into a satellite team to his squad in the event of a successful purchase of the Otro Capital stake.

A Mercedes spokesperson declined to comment when approached by PlanetF1.com.

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