Mercedes exits negotiations over Alpine F1 shares

      Mercedes is refusing to participate further in negotiations for acquiring a stake in Alpine F1, as the factory team of the Stuttgart concern considers the share price to be inflated – reports on this topic have appeared in the British press.

      Mercedes and Toto Wolff have already reached preliminary agreements with Renault's management, which had no objections to a possible deal; however, these 24% of shares belong not to the French automotive group but to the investment fund Otro Capital.

      And the American fund has requested a price that, in Mercedes' opinion, is clearly above market value, which is why the parties could not reach an agreement. Sources close to the negotiation process have already named this price: the private investment company requested $720 million for a 24% stake, valuing all of Alpine F1's assets at three billion dollars. Considering that three years ago Otro acquired this share package for 200 million euros, i.e., more than three times less.

      An unnamed source in the Renault group confirmed: "As far as we understand, the negotiations have been terminated."

      Neither Mercedes nor Toto Wolff are commenting on the situation for now, while information has emerged that a more reasonable price for all the assets of the factory team of the Renault group, which is currently a loss-making company, could be in the range of $2.2-2.4 billion. At least, according to Mercedes' calculations.

      Since Renault considered Mercedes to be the most preferred candidate for the shares of its team, negotiations with other parties have also been decided to be terminated. It is worth noting that one of these parties was a group of investors gathered by Christian Horner, the former head of Red Bull Racing.

      Renault has a veto right on any deals that Otro Capital may negotiate, but this right is only valid until September.