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Mercedes Walks Away From Alpine Stake Talks

A wide valuation gap has stalled the sale and left Renault’s veto in place until September, keeping the 24% share unresolved.

Overview

  • Mercedes pulled out of negotiations on Friday after Otro Capital demanded about $720 million for its 24% share, a price that implied a roughly $3 billion team valuation.
  • Mercedes and its advisers valued Alpine nearer $2.2–2.4 billion and declined to increase their offer, saying the asking price exceeded what they considered a sound financial investment.
  • Otro bought the stake in mid‑2023 for roughly $230 million, creating large potential gains for the seller and one reason Otro is seeking a much higher price today.
  • Renault retains veto rights over any sale until September and has said discussions have stopped, leaving other suitors such as a consortium linked to Christian Horner and private equity groups as possible buyers.
  • The row comes as Alpine secures a major Gucci title sponsorship and navigates weak recent results and losses, factors that explain both the seller’s price hopes and bidders’ caution.