Renault SA is in talks with RedBird Capital Partners over a possible investment in its Alpine Formula 1 team, a key part of the French carmaker’s sports-car business, according to people familiar with the matter.
(Bloomberg) — Renault SA is in talks with RedBird Capital Partners over a possible investment in its Alpine Formula 1 team, a key part of the French carmaker’s sports-car business, according to people familiar with the matter.
RedBird is considering buying a minority stake in the UK operations of Alpine, and the companies could announce a deal as soon as June 26, when Alpine is scheduled to host an event in Enstone, UK, said the people, who asked not to be identified discussing private matters. An agreement, however, isn’t yet signed and there’s no certainty the talks will lead to a deal, they said.
In RedBird, Alpine would gain a seasoned sports investor as Renault Chief Executive Officer Luca de Meo seeks to raise the brand’s profile in his push to expand the sports-car business and move toward electrification. The Formula 1 efforts are a key plank of his Alpine strategy.
After rebranding Renault’s Formula 1 team Alpine, he’s now developing a full line up of models to follow, with the brand, best known for its A110 sports coupé, set to become fully electric as of 2026.
Investors are increasingly being attracted to a sport whose popularity boomed in recent years. Under the possible deal, RedBird would help the Alpine team grow while expanding its global Formula 1 business, including media rights to sponsorships and content creation, said the people.
RedBird could potentially co-invest with other partners, they added.
Read more: Renault Leans Toward Making Alpine On Its Own, Not With Lotus
RedBird manages $8.6 billion of capital principally across sectors including sports and consumer and financial services, according to its website. The firm led a €1.2 billion ($1.3 billion) takeover of AC Milan last year and also owns the French soccer team Toulouse FC. Founded by Gerald Cardinale, RedBird also has a stake in the Fenway Sports Group, which owns the Boston Red Sox and Liverpool FC, and a stake in the US professional football league XFL.
Read more: Renault’s Alpine Seeking Women Drivers for its Formula 1 Team
The Alpine team finished fourth in the Formula 1 standings last season, helping boost the brand’s visibility and sales. While driver Esteban Ocon came in third at the prestigious Monaco Grand Prix last month, the start to this year’s Formula 1 championship has been otherwise difficult. The team is currently fifth in constructor standings, behind Red Bull Racing, Mercedes, Aston Martin and Ferrari.
An initial public offering of Alpine is a possibility in the longer term, the 56-year-old de Meo said last month. The company also is reviewing possible investors to help fund Alpine’s development, he has said.
(Updates with more background on Alpine in final paragraph.)
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