The Mercedes F1 Team announced that INEOS will become a one third shareholder in the team with Daimler AG and Toto Wolff. Here is the full press release.
The Mercedes-AMG Petronas Formula One Team is delighted to announce that INEOS will become a one third shareholder in the team, which will be owned in three equal parts by Daimler AG, INEOS and Toto Wolff.
The INEOS one-third stake in the team will be in addition to its existing role as Principal Partner. In parallel, Daimler will reduce its current 60% shareholding and Toto Wolff increase his current 30%, in order to create three equal partners in the company.
Since the Mercedes-Benz works team returned to Formula One in 2010, continuous strategic investment, sporting commitment and commercial growth have built the organisation into a leader in world sport with an unprecedented seven consecutive double world championships since 2014.
Anchored since 2010 by an iconic and unbroken title partnership with PETRONAS, the team enjoys the support of a portfolio of loyal and prestigious partners, strong commercial revenues and generates the leading share of audience and exposure in Formula One.
From 2021, the business landscape of Formula One will be transformed by new Financial Regulations which will enable teams to achieve standalone financial sustainability in the years ahead. The team will be strengthened by closer alignment to Mercedes-AMG, the performance division of Mercedes-Benz, and has already begun to diversify through its new business division Applied Science, which leverages high-performance engineering capability for innovative projects beyond motorsport.
The team will remain the works Formula One team of Mercedes-Benz and will continue to race Mercedes chassis and power units in the coming years.
Under the new shareholding structure, Toto Wolff will continue in his role as Team Principal and CEO for a further three years, leading the executive operations of the company and the racing team. He will have the subsequent opportunity to transition to a new executive function within the organisation when he decides it is the right time to do so.
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Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, commented:
“We are delighted to welcome INEOS to our Formula One joint venture as a fellow shareholder. 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.”
Sir Jim Ratcliffe, Chairman of INEOS, continued:
“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. 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.”
Toto Wolff, Team Principal and CEO, concluded:
“I am pleased to begin this new chapter for the Mercedes-AMG Petronas F1 Team. This team is like a family for me. We have been through so many highs and lows together that I cannot imagine working with a better group of people in this sport – and I am very happy to continue together into this new era. This new investment from INEOS confirms that the business case for Formula One teams is robust and sends an important signal of confidence in the sport after a challenging year. I am excited to welcome Jim, Andy and John to the team as co-owners: they have built one of the most profitable companies in the world, they embody the true spirit of entrepreneurship and their expertise will strengthen our board in the years ahead. In parallel, it is a privilege to continue my partnership with Ola, Markus Schäfer and Mercedes-Benz for the coming years. We are proud to have added to the brand’s prestigious motorsport heritage since 2010 and we share the ambition to grow the organisation further in the years to come.”
Source: Mercedes-AMG Petronas Formula One Team