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Mercedes Withdraws From Talks to Buy Alpine: Reports
Mercedes ended talks to buy Alpine’s 24% stake after Otro Capital’s asking price topped its valuation, sources said.
- Mercedes has pulled out of talks to acquire a 24% stake in the Alpine team from Otro Capital after determining the asking price was significantly above market value.
- Previously, Mercedes and Toto Wolff had reached an agreement in principle to purchase the stake, seeking to secure long-term engine supply links and leverage economies of scale.
- Insiders reported Otro Capital demanded $720m for its shareholding, implying a $3bn team valuation, while Mercedes considers a fair price of $2.2-2.4bn .
- Renault decided to stop further discussions regarding the sale, while Alpine recently secured a title sponsorship deal with the luxury brand Gucci.
- By 2031, Mercedes plans to reduce its customer teams to two, forcing McLaren, Williams, or Alpine to eventually secure a new engine supplier as regulations evolve.
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In December 2023, in order to finance its ambitions, the Alpine stable brought into its capital the Otro Capital investment fund. The latter is supported by high-level sportsmen such as Patrick Mohammeds, Rory McIlroy, Anthony Joshua or Juan Mata. For 200 million euros, he bought 24% of the capital of the Enstone-based stable. However, a little more than two years later, there is now a question of divestment of these shares with several candidat…
Coverage Details
Total News Sources23
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 16%
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