Mercedes co-owner is reportedly looking to significantly divest from the F1 team

Mercedes AMG F1 co-owners, INEOS, are reportedly looking to reduce their investment in the team. The rumours of this divestment became stronger after the new 2025 Silver Arrows livery was revealed at the F175 event, without the red INEOS sponsorship on the airbox.

The Mercedes Benz Group and INEOS, led by Founder and Chairman Sir Jim Ratcliffe, entered into a sponsorship agreement in early 2020, worth close to $130 million. After just 11 months, the petrochemical company acquired a 33% stake in the German F1 team, worth over $260 million. Their branding was prominent on the cars, with the red colored logo appearing on the airboxes, the rear wing and the front wing end-plates.

However, when the new W16 was revealed at the O2 Arena on 18th February, the airbox of the car was empty, and a small INEOS logo was present on the front wing, without the red color. This sparked rumours of INEOS having reduced their investment into the team.

After the event, the Mercedes group strongly denied these rumours, and shared that INEOS is still a committed partner, via a statement:

“There have been no discussions at any time about a change of shareholder and sponsorship with INEOS is ongoing and stable.” [via businessbookgp.com]

INEOS have drastically scaled down their sporting operation in recent times, having withdrawn partnerships from the world of swimming, cycling, sailing and rugby. Sir Jim Ratcliffe is the main man behind this decision, which stems from the company's newly bought stakes in his boyhood soccer club, Manchester United.

INEOS have bought close to 30% shares in Manchester United, worth around $1.2 Billion. Ratcliffe has also committed another $1 Billion to build a new 100,000-seater home stadium for the iconoc club. But the club's valuation dropped by 20% in 2024, causing them a loss of somewhere between $800 and $900 million.

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INEOS leaving Mercedes "never a consideration", claims Toto Wolff

Sir Jim Ratcliffe and Toto Wolff during INEOS announcement, 2021 - Source: Getty

Mercedes AMG F1 Co-owner and Team Principal Toto Wolff has said that there is no chance that his friend, Sir Jim Ratcliffe, will part ways with the F1 team. Wolff, INEOS and Mercedes-Benz all own 33% each of Mercedes AMG F1.

Wolff has claimed that contrary to news reports, INEOS are not going to leave the Brackley-based team and their F1 operation. Speaking before the F1 75 event, he told Sky Sports:

“[It was] never a consideration. Jim Ratcliffe is one of us three amigos – Mercedes, Jim and I. We are never going to part ways. He’s been a great sponsor. We have had projects together. Nothing you read in the news will change anything.”

Although the German has claimed that INEOS will not leave the team, he has made no mentions about them diluting their investment in the team.

Reports have suggested that Ratcliffe's plan is to sell 15% of his shares to the Mercedes-Benz group, reducing his stakes to 18% and increasing the German company's to 49%. Given the F1 team's current valuation, this sale could earn Sir Jim's company around $800 Million.

In October 2024, Mercedes AMG F1's also updated their rules on board appointments which suggested a shift in ownership may be coming. Shareholders with less than 25% but at least 10% can appoint only one director instead of two in these new rules.

Meanwhile, a majority shareholder with over 50% can appoint three directors, and a shareholders over 70% can appoint four. Before this, all three shareholders could appoint 2 board members each to a 6 member board. These changes hint that a shareholder could be preparing to sell part of their stake.