Ineos buys a third of the Mercedes Formula 1 team

Mercedes-Benz is changing the ownership structure of its Formula 1 team, the automaker announced at the end of last week.

Mercedes currently owns 60% of the team while Toto Wolff, the team’s CEO and team principal, owns 30% while other investors own the remaining 10% of the shares.

But under a new structure, the team will be split equally between Mercedes, Wolff and British chemical giant Ineos, while remaining the Mercedes factory team. Wolff will also pledge to lead the team for the next three years in an effort to quell rumors that he might join the Aston Martin F1 team (Wolff also owns a small percentage of Aston Martin).

The new deal also silences rumors earlier this year that Mercedes could step out of Formula 1 as a designer to cut costs while increasing spending in new areas like electrification and self-driving technology.

Ineos is the company that develops the Grenadier SUV and is already a sponsor of the Mercedes F1 team. Ineos also agreed this month to buy the Smart plant in Hambach, France, from Mercedes for use in the production of the Grenadier.

“This is a unique opportunity to make a financial investment in a team that is at the forefront of their game but still has great growth potential in the future,” said Jim Ratcliffe, chairman of Ineos, in a statement.

According to Mercedes, the introduction of new budget caps in Formula 1 from 2021 will mean that some teams will be able to become financially sustainable on their own, that is, without a big financier like an automaker to inject money to keep them running keep. The Mercedes team has also started diversifying beyond Formula 1 through its Applied Science department, an advisory department that applies F1 expertise to other areas.

The news of the new ownership structure at Mercedes F1 comes just a week after the McLaren Group announced that it is selling a third of its F1 team to MSP Sports Capital. And in August the Williams F1 team was sold to Dorilton Capital.