Mercedes pulls out of Alpine stake talks as valuation gap proves insurmountable

Mercedes has officially withdrawn from negotiations to acquire a minority stake in the Alpine Formula 1 team, with a significant gap in valuation ultimately proving too wide to bridge.

The Numbers That Killed the Deal

Mercedes, however, had been targeting a considerably lower figure of between $2.2 billion and $2.4 billion (£1.6–1.8bn) — a shortfall of several hundred million dollars that ultimately made agreement impossible. "We understand that discussions have stopped," insiders told BBC Sport.

Who Fills the Void?

With Mercedes now out of the picture, the question of who acquires the stake is very much unresolved. Christian Horner had previously emerged as a credible candidate, though those conversations appear to have cooled significantly in recent months, with no certainty over whether they will be revived.

The uncertainty arrives at a pivotal moment for Alpine. The team recently confirmed a headline-grabbing title sponsorship deal with Gucci, which will see the iconic fashion house's branding adorning the cars from next season — a partnership that carries clear commercial weight and, significantly, has helped shape the lofty $3 billion valuation that deterred Mercedes in the first place.

For those familiar with Alpine's history, the Gucci alignment carries a certain poetic resonance. The Enstone operation once raced as Benetton through the 1980s and 1990s — another marriage between motorsport and the world of fashion and luxury. Current Alpine Executive Advisor Flavio Briatore, who served as Team Principal during the Benetton era, finds himself once again central to the team's reinvention. As detailed in our deep-dive into Briatore's role and Renault's internal friction, the restructuring of Alpine has not come without controversy.

Renault Group retains the controlling stake in the team, which is currently running Mercedes power units — having shut down its own power unit development programme. Where the ownership picture settles next remains one of the more intriguing subplots of the current F1 landscape.