The valuation gap that killed the deal

At the core of the failed negotiation was a disagreement over what the Enstone-based team was actually worth. Otro Capital was seeking roughly $720 million (£536 million) for its 24% share, a number that implied a total enterprise value for Alpine of approximately $3 billion . Mercedes arrived at a very different figure. The Silver Arrows were targeting a total team valuation in the range of $2.2 billion to $2.4 billion, a gap of roughly $600–800 million from the seller's figure .

For Otro, the asking price reflects the rapid inflation of F1 team values across the grid. The consortium originally acquired the same 24% holding in 2023 for €200 million (about $233 million at the time), meaning the new price tag represented a markup of roughly 3.3x in just three years, based on the implied $3 billion team valuation .

BBC Sport quoted insiders confirming that discussions had stopped, and multiple outlets reported that Mercedes walked away cleanly rather than inch closer to Otro's number .

Who is Otro Capital and what are they selling?

Otro Capital is the lead firm in a high-profile investment consortium that bought into Alpine Racing Ltd in June 2023, with the deal closing in December 2023 . The group purchased the 24% stake for €200 million at a time when Alpine’s implied enterprise value was estimated at roughly $900 million .

The consortium blends traditional private equity with celebrity star power:

• Otro Capital is the lead private equity firm.
• RedBird Capital Partners, a U.S. sports investment house with stakes in AC Milan and a history with Fenway Sports Group.
• Maximum Effort Investments, co-founded by actors Ryan Reynolds and Rob McElhenney, who also co-own Wrexham AFC.
• A roster of athlete-investors that includes Michael B. Jordan, NFL stars Patrick Mahomes and Travis Kelce, golfer Rory McIlroy, boxer Anthony Joshua, and footballer Trent Alexander-Arnold .

Otro began quiet exploratory talks about offloading the stake as early as October 2025 . The firm believed that surging F1 team valuations, fueled by the sport's global growth and the arrival of a new Concorde Agreement, made the time ripe for a lucrative exit .

Other bidders left in the race

Alpine’s executive adviser Flavio Briatore told reporters there were "three or four potential buyers" circling the stake . With Mercedes gone, one candidate has emerged as the reported frontrunner:

• Christian Horner, the Red Bull team principal, confirmed in January 2026 that he was involved with an investor consortium exploring the Alpine opportunity. Multiple reports now position Horner’s group as the most likely buyer following Mercedes’ withdrawal .
• BYD, the Chinese electric vehicle manufacturer, was reported to be in "substantial negotiations" as a possible buyer of the 24% stake, potentially as a strategic entry into Formula 1 .
• Early speculation in March 2026 suggested Toto Wolff might be bidding personally, but Briatore later clarified that Mercedes as a corporate entity—not Wolff personally—was in the driver’s seat .

The number of interested parties has fluctuated as the process dragged on, but Briatore made clear the sale was not his personal undertaking: "Any approaches or discussions are with the existing shareholders, Otro Capital (24%) and Renault Group (76%), not directly with Flavio Briatore or the team" .

Ownership restrictions and Renault’s leash on any sale

Renault Group remains Alpine’s 76% majority owner, and that super-majority comes with serious contractual teeth that directly affect the current sale process .

• Right of first refusal: Renault is reported to have first-refusal rights on any sale of Otro’s 24% stake, allowing the French automaker to match a third-party offer and keep the share in-house .
• Veto power until September 2026: Documents linked to Otro’s shareholding indicate the firm cannot freely sell its stake without Renault’s approval until a three-year lock-up period expires—reported to end in September 2026 . Until that date, Renault holds an effective veto over any buyer. After September, the stake can theoretically go to the highest bidder.
• Boardroom consolidation: In April 2026, Renault tightened its grip by replacing CFO Duncan Minto on Alpine’s board with Guillaume Rosso, the group’s head of M&A. The move was widely read as positioning for either a hard block on unfavored buyers or preparation for a broader restructuring .

Some reports even suggested that Renault ultimately "decided not to allow" the Mercedes deal to proceed, indicating the majority shareholder used its contractual leverage to halt a transaction it did not favor .

Broader implications for F1 governance

The collapse of the Mercedes-Alpine talks does more than reshuffle the bidder list—it exposes a regulatory gray zone at the heart of Formula 1’s ownership rules.

• The cross-team ownership question: If Mercedes had succeeded, it would have owned a piece of a direct competitor. The FIA has yet to publish clear rules on whether—and how—a manufacturer can hold a minority stake in a rival team. FIA President Mohammed Ben Sulayem had already signaled the governing body might intervene in a Mercedes-Alpine deal, but no formal framework exists to adjudicate such a case .
• A governance vacuum across the grid: Several analysts noted that the Alpine sale could “reshape F1’s power map” precisely because the sport lacks settled rules governing minority cross-ownership . If Christian Horner—still affiliated with Red Bull—ultimately buys in, the question remains whether the FIA will treat that differently than a Mercedes corporate purchase. One report summarized the dilemma bluntly: the FIA currently has "no clear answer" .
• Renault’s long game: By replacing its CFO board member with an M&A specialist, Renault signaled it intends to control the outcome tightly. Whether that means reclaiming Otro’s stake outright, hand-picking a strategic partner, or preparing for a larger ownership shuffle is still unclear .
• Valuations decoupled from performance: Alpine has struggled on track in recent seasons, yet the $3 billion valuation figure puts it in line with surging valuations across all F1 teams regardless of race results. The situation mirrors broader trends where franchise-style scarcity has pushed F1 team prices well beyond what competitive results alone would justify .

The 24% Alpine stake remains in play for now, but the guardrails are tight: Renault holds a powerful veto until at least September 2026, the FIA hasn’t clarified its stance on multi-team cross-ownership, and buyers are pushing back hard on what they see as an inflated price tag. What started as a straightforward private-equity exit has become a referendum on who gets to own pieces of Formula 1’s future.

The valuation gap that killed the deal

At the core of the failed negotiation was a disagreement over what the Enstone-based team was actually worth. Otro Capital was seeking roughly $720 million (£536 million) for its 24% share, a number that implied a total enterprise value for Alpine of approximately $3 billion . Mercedes arrived at a very different figure. The Silver Arrows were targeting a total team valuation in the range of $2.2 billion to $2.4 billion, a gap of roughly $600–800 million from the seller's figure .

For Otro, the asking price reflects the rapid inflation of F1 team values across the grid. The consortium originally acquired the same 24% holding in 2023 for €200 million (about $233 million at the time), meaning the new price tag represented a markup of roughly 3.3x in just three years, based on the implied $3 billion team valuation .

BBC Sport quoted insiders confirming that discussions had stopped, and multiple outlets reported that Mercedes walked away cleanly rather than inch closer to Otro's number .

Who is Otro Capital and what are they selling?

Otro Capital is the lead firm in a high-profile investment consortium that bought into Alpine Racing Ltd in June 2023, with the deal closing in December 2023 . The group purchased the 24% stake for €200 million at a time when Alpine’s implied enterprise value was estimated at roughly $900 million .

The consortium blends traditional private equity with celebrity star power:

• Otro Capital is the lead private equity firm.
• RedBird Capital Partners, a U.S. sports investment house with stakes in AC Milan and a history with Fenway Sports Group.
• Maximum Effort Investments, co-founded by actors Ryan Reynolds and Rob McElhenney, who also co-own Wrexham AFC.
• A roster of athlete-investors that includes Michael B. Jordan, NFL stars Patrick Mahomes and Travis Kelce, golfer Rory McIlroy, boxer Anthony Joshua, and footballer Trent Alexander-Arnold .

Otro began quiet exploratory talks about offloading the stake as early as October 2025 . The firm believed that surging F1 team valuations, fueled by the sport's global growth and the arrival of a new Concorde Agreement, made the time ripe for a lucrative exit .

Other bidders left in the race

Alpine’s executive adviser Flavio Briatore told reporters there were "three or four potential buyers" circling the stake . With Mercedes gone, one candidate has emerged as the reported frontrunner:

• Christian Horner, the Red Bull team principal, confirmed in January 2026 that he was involved with an investor consortium exploring the Alpine opportunity. Multiple reports now position Horner’s group as the most likely buyer following Mercedes’ withdrawal .
• BYD, the Chinese electric vehicle manufacturer, was reported to be in "substantial negotiations" as a possible buyer of the 24% stake, potentially as a strategic entry into Formula 1 .
• Early speculation in March 2026 suggested Toto Wolff might be bidding personally, but Briatore later clarified that Mercedes as a corporate entity—not Wolff personally—was in the driver’s seat .

The number of interested parties has fluctuated as the process dragged on, but Briatore made clear the sale was not his personal undertaking: "Any approaches or discussions are with the existing shareholders, Otro Capital (24%) and Renault Group (76%), not directly with Flavio Briatore or the team" .

Ownership restrictions and Renault’s leash on any sale

Renault Group remains Alpine’s 76% majority owner, and that super-majority comes with serious contractual teeth that directly affect the current sale process .

• Right of first refusal: Renault is reported to have first-refusal rights on any sale of Otro’s 24% stake, allowing the French automaker to match a third-party offer and keep the share in-house .
• Veto power until September 2026: Documents linked to Otro’s shareholding indicate the firm cannot freely sell its stake without Renault’s approval until a three-year lock-up period expires—reported to end in September 2026 . Until that date, Renault holds an effective veto over any buyer. After September, the stake can theoretically go to the highest bidder.
• Boardroom consolidation: In April 2026, Renault tightened its grip by replacing CFO Duncan Minto on Alpine’s board with Guillaume Rosso, the group’s head of M&A. The move was widely read as positioning for either a hard block on unfavored buyers or preparation for a broader restructuring .

Some reports even suggested that Renault ultimately "decided not to allow" the Mercedes deal to proceed, indicating the majority shareholder used its contractual leverage to halt a transaction it did not favor .

Broader implications for F1 governance

The collapse of the Mercedes-Alpine talks does more than reshuffle the bidder list—it exposes a regulatory gray zone at the heart of Formula 1’s ownership rules.

• The cross-team ownership question: If Mercedes had succeeded, it would have owned a piece of a direct competitor. The FIA has yet to publish clear rules on whether—and how—a manufacturer can hold a minority stake in a rival team. FIA President Mohammed Ben Sulayem had already signaled the governing body might intervene in a Mercedes-Alpine deal, but no formal framework exists to adjudicate such a case .
• A governance vacuum across the grid: Several analysts noted that the Alpine sale could “reshape F1’s power map” precisely because the sport lacks settled rules governing minority cross-ownership . If Christian Horner—still affiliated with Red Bull—ultimately buys in, the question remains whether the FIA will treat that differently than a Mercedes corporate purchase. One report summarized the dilemma bluntly: the FIA currently has "no clear answer" .
• Renault’s long game: By replacing its CFO board member with an M&A specialist, Renault signaled it intends to control the outcome tightly. Whether that means reclaiming Otro’s stake outright, hand-picking a strategic partner, or preparing for a larger ownership shuffle is still unclear .
• Valuations decoupled from performance: Alpine has struggled on track in recent seasons, yet the $3 billion valuation figure puts it in line with surging valuations across all F1 teams regardless of race results. The situation mirrors broader trends where franchise-style scarcity has pushed F1 team prices well beyond what competitive results alone would justify .

The 24% Alpine stake remains in play for now, but the guardrails are tight: Renault holds a powerful veto until at least September 2026, the FIA hasn’t clarified its stance on multi-team cross-ownership, and buyers are pushing back hard on what they see as an inflated price tag. What started as a straightforward private-equity exit has become a referendum on who gets to own pieces of Formula 1’s future.