Mercedes have stepped away from discussions over buying a minority share in the Alpine Formula 1 team after deciding the French outfit’s valuation was too high.
The German manufacturer had explored the possibility of investing in Alpine as part of wider talks linked to Formula 1’s growing commercial appeal and the sport’s increasing franchise values. However, sources close to the negotiations said Mercedes ultimately chose not to proceed because the asking price did not represent sufficient value.
Alpine, owned by Renault, has been searching for additional investment as it continues efforts to improve its competitiveness on the grid and strengthen its long-term financial position. The team already attracted outside capital in 2023 when a consortium that included Hollywood actor Ryan Reynolds and NFL stars Patrick Mahomes and Travis Kelce invested €200m for a 24% stake.
Mercedes’ withdrawal leaves Alpine free to continue talks with other potential investors. The Enstone-based team remains one of Formula 1’s most recognised brands, despite struggling for consistent results in recent seasons.
The discussions reflected the growing financial boom around Formula 1 teams, with franchise values climbing sharply following the sport’s global expansion, booming sponsorship market and rising television audiences. Several teams are now valued at billions of dollars, making minority stakes increasingly expensive.
Mercedes, meanwhile, remain focused on their own works operation and preparations for Formula 1’s major regulation changes coming in 2027. The Silver Arrows have shown improved form this season and are continuing to invest heavily in their future engine and chassis programmes.
Alpine have endured a difficult period both on and off the track, with management reshuffles, inconsistent performances and uncertainty surrounding the team’s long-term direction. Even so, interest from major investors underlines how attractive Formula 1 ownership has become in the current market.
The collapse of the talks does not affect the existing relationship between Mercedes and Alpine regarding future engine supply discussions, which remain separate from any ownership negotiations.