Transaction Overview and Confirmation
Mercedes-Benz, through its Formula 1 entity, has formally withdrawn from negotiations to acquire the 24% minority shareholding in BWT Alpine F1 Team held by U.S. private equity firm Otro Capital. The development was first outlined in reporting by Thomas Maher of PlanetF1 and has been corroborated by subsequent statements from Alpine’s de facto team boss Flavio Briatore and filings tracked by international wire services.
The stake became available in early 2026 when Otro Capital initiated a sale process. Otro purchased the 24% position in June 2023 for $233 million, part of a transaction that valued Alpine F1 at approximately $970 million at the time. Since then, Formula 1’s commercial expansion, cost cap stability, and the 2026 Concorde Agreement renewal have driven team valuations materially higher. Current market assessments cited by Sky Sports and Reuters place Alpine’s enterprise value near $3 billion, implying Otro’s 24% could command roughly $720 million.
Briatore confirmed Mercedes was one of “three or four potential buyers” engaged in talks. He emphasized the negotiation was “with Mercedes, not with Toto, with Mercedes”, clarifying that the bid originated from the Mercedes F1 corporate entity rather than Team Principal Toto Wolff personally. The Mercedes F1 Team is jointly owned by Mercedes-Benz AG 33%, INEOS 33%, Toto Wolff 28%, and George Kurtz 5%.
With Mercedes now withdrawn, the remaining bidders are believed to be financial investors. A consortium including former Red Bull Racing Team Principal Christian Horner has been publicly linked to the same stake. Briatore stated Horner “is negotiating with Otro, not negotiating with us,” but Renault Group retains final approval over any buyer.
Strategic Rationale for Mercedes’ Initial Interest and Subsequent Withdrawal
Initial Strategic Logic
Mercedes’ interest was commercial and regulatory. Alpine will become a Mercedes power unit customer from 2026 through at least 2030 after Renault Group discontinued its Viry-Châtillon engine program. Acquiring a minority position would have:
Secured a long-term customer: Preventing Alpine from switching suppliers and aligning technical roadmaps.
Blocked rival OEMs: Ensuring no other manufacturer, such as General Motors/Cadillac or Hyundai, could take equity and influence in Enstone.
Financial upside: Capturing appreciation from F1’s franchise-like valuation growth without operational responsibility.
Governance Constraints
Briatore repeatedly stressed that a 24% holder would be a “passenger” with limited influence: “Normally one company, 75% decide and the 25% is a passenger”. Renault Group retains 76% and full voting control. Therefore, Mercedes could not dictate sporting or technical policy.
Regulatory Risk
FIA President Mohammed Ben Sulayem told The Times he is “personally against” multi-team ownership, though he sees arguments “if done for the right reasons”. He specifically flagged concern over stakes acquired “because you don’t want others to take it, or also get voting power when it comes to the regulations”. Mercedes’ withdrawal removes the most prominent example of an engine supplier potentially holding equity in a customer team, easing immediate pressure on the FIA to intervene.
Reputational and Political Factors
The bid risked reviving tensions between Toto Wolff and Christian Horner, described as “high-profile adversaries in the paddock and also in the hit Netflix ‘Drive to Survive’ docu-series”. With Horner pursuing the same asset after being sacked by Red Bull in July 2025, Mercedes’ presence would have been interpreted as directly blocking Horner’s return. Withdrawal depoliticizes the sale.
Christian Horner’s Position and Pathway to Re-Entry
Background
Horner was dismissed by Red Bull GmbH in July 2025 after 20+ years, reportedly with an £80 million ($108.72 million) payoff. Since then, he has been linked to multiple F1 re-entry routes, including a full team purchase. However, current valuations make whole-team acquisitions prohibitive for individuals.
Alpine Opportunity
Alpine presents three advantages:
Geography: Based in Oxfordshire, UK, near Horner’s residence.
Relationships: Longstanding professional ties with Flavio Briatore, who returned to F1 as Renault’s executive advisor.
Timing: Renault’s willingness to entertain financial partners after ending its engine program.
Alpine confirmed in January 2026 that “a group of investors, which also includes Christian Horner,” had expressed interest. Reports indicate his consortium includes MSP Sports Capital, which previously held equity in McLaren Racing.
Remaining Hurdles
Despite Mercedes’ exit, Horner faces:
Capital: At a $3B valuation, 24% requires ∼$720M. Horner’s payoff covers only a fraction, necessitating co-investors.
Renault Approval: Briatore stated Renault must “accept the buyer” after Otro selects one.
Role: Even with equity, Horner would not automatically gain an executive role. Renault controls operations. His influence would be via board representation and strategic input.
Ben Sulayem said he expects Horner “will be back sooner or later”, but the FIA is simultaneously “looking into whether multi-team ownership should be allowed”.
Multi-Team Ownership: Precedent, Policy, and Stakeholder Positions
Red Bull Precedent
Red Bull GmbH owns Red Bull Racing and Racing Bulls. It acquired Minardi at the end of 2005 “when the team were on the brink of folding, saving jobs and keeping cars on what would otherwise have been a depleted starting grid”. The second team has functioned as a feeder, developing Max Verstappen, Sebastian Vettel, and other race winners. Critically, both teams operate with centralized driver contracts and seamless staff movement.
Current Opposition
McLaren CEO Zak Brown has highlighted disadvantages in recruiting top staff and risks of collusion between teams with common ownership. Ben Sulayem echoed that “owning two is not the right way, this is my personal point of view,” but noted the issue is “a complicated area”.
Why Alpine is Different
Mercedes’ proposed stake was 24%, non-controlling, and in a team using its engines. Audi team principal Jonathan Wheatley argued such arrangements should not be problematic because a minority holder lacks decision power. Briatore’s “passenger” comment supports that view. Nonetheless, the FIA’s review was triggered specifically because Mercedes, an engine supplier, was linked. Mercedes’ withdrawal likely defuses the most contentious test case.
Valuation Mechanics and F1’s Investment Market
Valuation Growth
Otro’s 2023 entry at a ∼$970M team valuation and potential 2026 exit near $3B represents >200% appreciation in under three years. Drivers include:
Cost Cap: Limits spending at ∼$145M annually, creating profit predictability.
Concorde Agreement: Guarantees revenue share through 2030, with expansion fees for new entrants exceeding $600M.
Media Rights: Growth of U.S. audience and global sponsorship, including title deals exceeding $100M/year.
Scarcity: Only 11 teams, with the FIA limiting expansion.
Investor Profile
Otro’s co-investors include RedBird Capital Partners, Maximum Effort Investments, Ryan Reynolds, Rob McElhenney, Patrick Mahomes, Travis Kelce, Rory McIlroy, and Anthony Joshua. F1 equity now attracts entertainment, sports, and private equity capital. Horner’s reported partner MSP Sports Capital and Mercedes’ corporate interest show the asset class has moved from distressed-team rescues to strategic portfolio holdings.
Renault Group and Alpine F1: Strategic Context
Renault retains 76% and has stated F1 remains core to Alpine’s brand strategy. However, it shut its Viry-Châtillon engine facility in 2025, committing to Mercedes power from 2026. That decision made Alpine a customer team for the first time in the hybrid era, reducing costs but also technical independence.
Selling 24% via Otro in 2023 raised capital and brought U.S. marketing reach. A second sale now would allow Otro to exit with profit, while Renault could select a partner aligned with its vision. Briatore’s role as executive advisor reporting to Renault bosses gives him influence but not final say.
Forward Scenarios Briatore summarized the fluidity: “Every day is a new situation”.
Conclusion: Governance, Competition, and Capital
Mercedes’ withdrawal resolves a short-term governance flashpoint. It removes the prospect of an engine supplier holding equity in a customer team while that relationship is active, a scenario the FIA was actively reviewing.
For Christian Horner, the path is clearer but not guaranteed. Capital requirements and Renault’s approval remain gating items. For Alpine, the sale will test whether F1 teams can sustain $3B valuations and whether Renault prefers a passive financial partner or a strategic F1 insider.
The broader significance is structural: F1 teams are now financial assets traded between private equity, OEMs, and high-net-worth individuals. The FIA’s challenge is to update governance for an era where minority stakes, not just whole-team ownership, can influence the competitive and political landscape.