Clash over the valuation
In recent weeks, a principle agreement between Mercedes and the investment group Otro Capital had emerged for the transfer of ownership of 24% of the Alpine F1 team shares.
The negotiation had been at the center of multiple discussions about the opportunity for the Silver Arrows to have a stake in another team, then involving in the debate the dual ownership Red Bull-Racing Bulls.
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But the negotiations between Mercedes and Otro Capital have broken down, as reported by the BBC. There was an insurmountable difference of views on the team’s valuation: the US fund asked for 720 million dollars for its 24%.
Mercedes was willing to spend up to 576 million dollars.
How much is Alpine worth?
A very different valuation emerged between the parties, since for Otro Capital Alpine is worth a total of 3 billion dollars, while for Mercedes no more than 2.2-2.4 billion.
In June 2023 Otro Capital paid 200 million euros for 24% of the team.
Renault has veto power over the American fund’s negotiations until September and at the moment it seems to have decided not to engage in further discussions. In particular the BBC highlighted that Renault intends to use this veto to prevent the takeover by any group close to Christian Horner.
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