Mercedes has walked away from negotiations to acquire Otro Capital's 24% stake in the Alpine F1 team, ending talks over the asking price. The manufacturer already supplies power units and gearboxes to Alpine but deemed the $720m valuation excessive for a sound investment.

Otro Capital purchased the shares in June 2023 for $233m, representing a dramatic increase in their asking price. The $3bn team valuation proposed by Otro significantly exceeds Mercedes' assessment of Alpine's worth, creating an impasse that proved insurmountable.

Majority owner Renault retains veto power over any sale until September, while former Red Bull boss Christian Horner leads another interested consortium. This leaves Alpine seeking alternative investors for the minority stake amid ongoing financial restructuring discussions.

The development comes weeks after Alpine secured a landmark partnership with Gucci for title sponsorship, with the team rebranding as Gucci Racing Alpine in 2027. The luxury brand replaces BWT and takes control of car livery design, potentially boosting the team's commercial appeal for future investment opportunities.