mendis wrote: ↑Tue Dec 12, 2023 2:16 am
CHT wrote: ↑Mon Dec 11, 2023 11:41 pm
With Merc securing long-term engine supply contract with Mclaren and the possibility of Toto selling the Merc team, I wonder if Merc will continue their F1 with Merc AMG F1 since they have already reduced their stake from 60 to 30%.
https://www.planetf1.com/news/toto-wolf ... rts-pundit
Toto is an investor and no investor would let go of a golden opportunity to get optimum returns on his investment. It's not a good news for an investor if the valuation of the team goes down due to it's lack of success. I wouldn't be surprised if he sells his stake in the team.
This team is a good brand value for Mercedes and there is no reason for them to sell it, regardless of stock value. Moreover, with cost cap, they are a profitable outfit.
I thought of that for Merc too, but back in 2021, Merc did sell half of its 60% stake to INEOS investment group, a company that is involved in sports such as football rugby cycling sailing, etc, and recently tried to bid for ManU.
If Merc is seeking long-term control over the team, I suppose they will want to maintain at least 51% controlling stake as the majority shareholder. Suppose if Toto decides to sell, INEOS and Merc will likely have the first right to acquisition. For Merc, it's most unlikely since they had just trimmed their shareholding. For INEOS, they will most certainly be interested since they are a deep-pocket sports investment company, for sure they will be looking at buying low instead of high. In a business transaction, one man's loss is another man's gain.