Mercedes will no longer pursue a share of the Alpine F1 Team.

Mercedes has walked away from plans to acquire a minority stake in Alpine, with a key sticking point over valuation accelerating the collapse of talks. The German manufacturer had been progressing a deal with Alpine owner Renault and Otro Capital to take a 24 percent share in the Enstone-based Formula 1 outfit, but a gap over price proved insurmountable.

Under the previously reported arrangement, Otro Capital’s stake valued Alpine at about £2.2 billion, which would translate to roughly £536 million for the 24 percent holding. The premium appeared to reflect Alpine’s profile, growth potential and the strategic importance of the F1 team within the Renault-Mitsubishi-Nissan alliance’s broader motorsport and branding ambitions. But Mercedes and Toto Wolff argued that the asking price was too steep given their own valuation of Alpine.

Mercedes’ assessment placed Alpine in a range of about £1.6 billion to £1.8 billion, a figure notably lower than Otro’s perceived valuation. That discrepancy left Mercedes unable to justify the deal on financial grounds, and the decision to exit was described by insiders as a clear choice to walk away rather than overpay in a market where valuations can swing on political and sporting considerations as well as performance metrics.

The withdrawal comes amid heightened interest in Otro’s stake. Former Red Bull team principal Christian Horner had indicated that there had been substantial appetite for the share within the paddock and among investors who see Alpine as a valuable asset with ties to two of the sport’s major manufacturers. Yet, despite that appetite, Renault retained certain protections on the stake. Renault can veto a sale of Otro’s share until September, a veto that effectively cooled the momentum of ongoing negotiations and left Alpine in a position to pause or reconsider any external stake sales.

The decision also impacts Mercedes’ broader strategy for its customer-team approach. Alpine has been operating as a customer outfit for Mercedes this season, a relationship aligned with Mercedes’ aim to streamline its customer network from three teams toward two as the current regulations shift the competitive landscape. The trajectory of those plans remains under review as Mercedes evaluates how many customer teams it can sustain while maintaining performance and development intensity across its own works operation.

In parallel to the share-purchase discussions, Alpine announced a major branding and sponsorship arrangement with Gucci that will come into effect from 2027. The collaboration marks a high-profile entry of the luxury fashion house into F1 branding and commercial activity, underscoring Alpine’s broader strategy to elevate its commercial profile alongside its on-track performance. The deal is reported to involve a substantial financial package, reflecting Gucci’s ambitions to leverage the sport’s global reach and Alpine’s position within the Renault-Nissan-Mitsubishi ecosystem.

For Alpine, the aborted talks with Mercedes represent a setback in the quest to restructure ownership and align capital with growth plans. It leaves Renault’s ownership and strategic direction as a central influence on the team’s future, with the French manufacturer retaining veto rights over major sales. The absence of a Mercedes stake could also influence how Alpine capitalizes on its technical collaboration with Mercedes and how it positions itself in a rapidly evolving F1 market characterized by cost caps, budget optimization, and a shifting balance between manufacturer-backed operations and independent outfits.

Looking ahead, Alpine will continue to navigate its strategic partnerships and investor relations, while Mercedes refines its approach to customer programs and ownership models. The Gucci partnership introduces a new revenue stream and branding path for Alpine, signaling that the team intends to pursue high-profile commercial deals even as it re-evaluates its structural and ownership options in a landscape where value assessments can vary widely depending on the angles considered.