Mercedes pull out of talks over Alpine minority stake purchase

Mercedes-AMG Petronas Formula 1 team principal Toto Wolff confirmed to the BBC that talks to acquire a minority stake in Alpine have ended. According to Wolff, Renault, Alpine's parent owner, presented a valuation of the team that was 'not sustainable from Mercedes's perspective.'

The talks began in autumn 2025 after Alpine's decision to switch to a Mercedes power unit for the 2026 season. Speaking to the BBC, Wolff said 'becoming a shareholder in a team we have just won as a customer carried commercial appeal for us, but the price-value equation did not work.' BBC F1 sports editor Andrew Benson reported that Renault was seeking a valuation in excess of 750 million euros for Alpine.

Alpine CEO Cyril Abiteboul, speaking to La Tribune, characterised the Mercedes withdrawal as 'the conclusion of discussions with one prospective partner.' Abiteboul stressed that Renault Group's plan to grow the Alpine brand in both Formula 1 and the electric sports car segment remained unchanged.

F1 team valuations have risen sharply over the past three years. In Forbes's 2025 ranking, Mercedes and Ferrari surpassed the 4 billion dollar threshold and Aston Martin approached 3 billion dollars. According to a study by Sportico together with KPMG, the compound annual growth in F1 team valuations reached 22 percent. Those figures suggest that the price Renault is seeking for Alpine is aligned with market trends.

Mercedes's withdrawal from talks has also brought back into focus the manufacturer's strategy of reinforcing its role as a Formula 1 engine supplier. Daniel Schloesser, chief financial officer of Mercedes Motorsport, announced that the manufacturer will continue to supply power units to customers including Alpine, McLaren and Williams during the 2026 engine regulation reset. Schloesser added that 'our customer base is a strategic anchor.'

The financing plan set out for Alpine by Renault Group CEO Luca de Meo is aimed at funding investments in the sporting brand. According to the BBC, the 2024 Alpine season, marked by misfortune, had triggered discussions within Renault Group over running the brand with an autonomous budget. The Mercedes partnership had aimed to ease that budgetary pressure with a short-term capital inflow.

Other minority-stake cases in the F1 market are setting precedent. McLaren Group's sale of 25 percent to Sentinel Capital in 2024 and Aston Martin Lagonda's strategic sponsorship agreement with Aramco are examples of F1 teams broadening their financing base. Goldman Sachs sports finance expert Sarah Grafe said 'structures that finance on-track performance as an independent asset are increasing.'

Mercedes's decision-making process also coincided with updates to Mercedes-Benz Group's EV strategy. Group CEO Ola Källenius announced on last month's investor call that R&D spending would be reduced eight percent for the 2026 financial year. That figure implies the motorsport unit will also be evaluated within the budgetary discipline framework. Investment advisory firm Deutsche Bank analyst Tim Rokossa commented that 'Mercedes's motorsport strategy cannot be held independent of decisions in the core automotive business.'

On the Alpine side, the search for alternative investors continues. A source speaking to Reuters indicated Renault has held preliminary talks with Saudi Arabia's Public Investment Fund (PIF). Such a tie-up would reinforce the trend toward greater sovereign-wealth presence in F1 team ownership. McKinsey's sports finance report projects sovereign-fund presence in 35 percent of F1 teams by 2026.

The collapse of the Mercedes-Alpine partnership has highlighted Wolff's priority on stabilising the team's internal budget ahead of the 2026 season. In his closing assessment to the BBC, Wolff said 'the line between Mercedes's investor identity and team identity must be drawn well.' The comment indicated that the manufacturer is preparing to rebalance customer strategy alongside on-track performance for the 2026 season. This article does not constitute investment or share-purchase advice.