Why Mercedes Just Walked Away From the Alpine F1 Deal

The Formula 1 paddock is down one potential mega-deal. While it looked like Mercedes was about to buy a major stake in the Alpine F1 team, the German manufacturer has officially backed out.

What happened, why did the deal collapse, and what does this mean for the grid? Here is the quick breakdown.

By Jakob van Putten | RNT-Motorsports | 1 June 2026

1. What was the deal?

Mercedes was in serious talks to buy a 24% minority stake in Alpine. This share is currently owned by Otro Capital the investment group that famously brought stars like Ryan Reynolds and Travis Kelce into F1. Since Alpine is already switching to Mercedes engines, a financial partnership seemed like the perfect match.

2. Why did Mercedes back out?

In short: the price tag. Otro Capital bought their stake in 2023 for around $233 million, but they are now asking for a massive premium.

• The asking price: Otro wants $720 million, which values the total Alpine team at a whopping $3 billion.

• The Mercedes reality check: Toto Wolff and his team think that is way too expensive. Mercedes values Alpine between $2.2 billion and $2.4 billion. With a gap of at least $150 million, Mercedes decided to walk away.

3. Relief for the competition

Mercedes backing out is music to the ears of teams like McLaren. CEO Zak Brown has been openly complaining to the FIA about “A- and B-teams” and co-ownership in F1. Mercedes claimed this was just a financial investment, but the political drama is now avoided.

4. Is the door open for Christian Horner?

With Mercedes out of the race, all eyes are now on Christian Horner. The former Red Bull boss is looking for a way back into F1 and is reportedly very interested in that same 24% stake.

Horner has a great relationship with Alpine advisor Flavio Briatore. While Renault (Alpine’s parent company) currently has a veto on the sale, the battle for the French team is wide open again.