Mercedes walks away from ‘overpriced’ Alpine F1 share purchase

Mercedes has reportedly backed out of negotiations over buying Otro Capital’s minority share in the Alpine Formula 1 team over cost.

Mercedes has been linked to buying a 24% share in Alpine since the early months of the year, with plans progressing to the point of an agreement in principle with Renault.

However, according to a new report from the BBC, Mercedes has now walked away from any potential deal.

The report claims that Otro was looking for £536m for its share in Alpine it purchased for £171m three years ago.

In that time, Alpine went from sixth in the constructors’ standings in 2023 with two podiums and 120 points, to sixth in the standings with two podiums on 65 points in 2024.

And in 2025, Alpine slid to the bottom of the constructors’ table with just 22 points.

Mercedes is reported to have considered Otro’s asking price for its share in Alpine, which values the team at £2.2 billion, too high for an outfit that isn’t profitable right now.

Mercedes is thought to have considered Alpine’s value to be somewhere in the region of £1.6-£1.8 billion.

Prior to Mercedes walking away from the deal, McLaren team boss Zak Brown had become increasingly vocal about ‘A-B’ team structures.

The 24% Otro stake in Alpine had also been linked to a buy-in by former Red Bull team boss Christian Horner.

At one stage, this looked like Horner’s most likely route back into the F1 paddock, before Mercedes became involved.

However, even with Mercedes backing away, Renault is thought to have elected not to continue talks with Horner.

In recent weeks, Horner, who lost his role with Red Bull midway through the 2025 season, has been linked to leading a potential BYD entry into F1.

Earlier this week, Alpine announced a new title partnership with fashion brand Gucci worth £150m.