Mercedes have reportedly pulled out of negotiations to acquire a minority stake in the Alpine Formula 1 team, bringing an end to discussions that had progressed significantly in recent months.
The German manufacturer was understood to have reached an agreement in principle with Renault, Alpine’s majority owner, regarding the purchase of a 24 percent shareholding in the Enstone-based outfit. However, the proposed deal has now collapsed, with reports suggesting that disagreements over the valuation of the stake ultimately prevented an agreement from being finalized.
The shares in question are currently owned by Otro Capital, an investment group that acquired the stake from Renault three years ago. The consortium includes several high-profile sports figures among its investors, including heavyweight boxing champion Anthony Joshua, golf star Rory McIlroy, and England football international Trent Alexander-Arnold.
Mercedes’ interest in securing a stake in Alpine emerged after the two companies strengthened their relationship through a power unit agreement. Alpine switched to Mercedes engines at the beginning of the 2026 Formula 1 season, creating speculation that a deeper strategic partnership could eventually follow. A minority ownership position was viewed by some as a natural next step in that collaboration.
Despite the apparent progress in talks, the transaction encountered a significant obstacle. While Mercedes had reportedly reached an understanding with Renault, the arrangement still required cooperation from Otro Capital, the current holder of the shares. The complexity of the ownership structure, combined with differing expectations over the value of the stake, is believed to have contributed to the breakdown in negotiations.
The collapse of the deal may also have wider implications for former Red Bull team principal Christian Horner. Horner has recently been linked with efforts to become involved with Alpine through a separate investor group interested in purchasing the available shares. Reports have suggested that he has been actively meeting with potential investors and exploring opportunities that could lead to a future role within the team.
However, any attempt by Horner-backed investors to acquire the stake could face resistance. Renault reportedly retains the power to block a sale until September, giving the French manufacturer significant influence over who becomes involved with Alpine. Sources indicate that Renault would be prepared to use this authority to prevent a takeover by any consortium closely associated with Horner.
As a result, Horner’s ambitions of securing a pathway back into Formula 1 management may face a major challenge. While interest in the available shares remains strong, Renault’s position means that any potential buyer must not only satisfy financial requirements but also gain the approval of Alpine’s majority owner.
With Mercedes now stepping away from the process and uncertainty surrounding other interested parties, the future ownership structure of Alpine remains unresolved. The coming months are expected to be crucial as investors assess their options and Renault determines the direction it wants the team to take both on and off the Formula 1 grid.
