Mercedes AMG F1 team’s ownership will now be split three ways, as INEOS have bought an equal share of the team to match the existing shareholders.
The Mercedes AMG Formula 1 team will now be owned by three separate parties, as INEOS have come on board as a one third shareholder.
The British company became a primary sponsor of Mercedes for 2020 and, almost immediately, rumours started circulating that the chemical company were interested in purchasing the team outright from Daimler. These rumours were further fuelled by Eddie Jordan’s comments in September, in which the former Jordan team owner claimed to know for certain that the team would be sold.
These rumours have turned out largely true, as Sir Jim Ratcliffe’s INEOS company has purchased a third of the team with a stake of 33%. These shares have been bought from Daimler AG, Merc’s parent company, who will reduce their shareholding from 60% to 33%, with Toto Wolff increasing his stake from 30% to 33%. This means INEOS, Daimler & Toto Wolff each own a third of Mercedes-AMG F1, meaning a manufacturer, an investor and a primary sponsor now each have direct ownership of the team.
Despite Daimler’s reduction of ownership, the team will remain the works Formula 1 effort from Mercedes, with Merc chassis and power units continuing.
Toto Wolff will continue as Team Principal and CEO for another three seasons, as well as having the opportunity to move into a different executive role when he decides he wants to.
“We are delighted to welcome INEOS to our Formula One joint venture as a fellow shareholder.” said Merc and Daimler Chairman Ola Kallenius. “It is a sign of the strength of the organization in Brackley that we have been able to attract prestigious investors in INEOS, who see real potential for the future growth and development of the team.”
“We remain firmly committed to Formula One, and the forthcoming cost cap along with the new shareholding structure put us in an even stronger position for continued success. With an even closer alignment to our Mercedes-AMG performance division beginning in 2021, and Toto’s continued leadership in the coming years, the future is bright for Mercedes-Benz in Formula One.”
“Big challenges are a core part of our mindset at INEOS and our involvement across a number of different sports demonstrates that we always aim for the very best.” said INEOS’ Chairman Sir Jim Ratcliffe.
“When we entered Formula One earlier this year, we chose to do so with a Mercedes team that had set new benchmarks, and since then we have been in discussions about how we could increase our involvement. This is a unique opportunity to make a financial investment in a team at the very top of its game, but which still has rich potential to grow in the future. We could not wish for better partners than Mercedes-Benz, and a team of proven winners led by Toto.”