What The Papers Say About Merc Take-Over

Tuesday 17th November 2009

Fleet Street are hailing Mercedes' take-over of Brawn GP as an astute piece of business for both parties and a sign that Formula One is not in doldrums...

'The commentators who were quick to give Formula One a good kicking following the recent withdrawal of Toyota ought to - but probably won't - apply the same zeal in a more positive manner following the acquisition of 75.1% of Brawn Grand Prix by Mercedes-Benz. If ever there was a vote of confidence in the immediate future of the sport, then this is it.

'There have already been one or two observers seizing on the fact Mercedes has only said it "could" continue to supply McLaren, its erstwhile long-standing partner, with engines until 2015 but if that is the height of the disaster, then Formula One is in reasonable shape in these straitened times.

'Daimler AG, owners of the Mercedes-Benz brand, could have walked away from Formula One without a backward look after 15 years, three drivers' world championships and 60 wins with McLaren. It has been an outstanding relationship that could easily have been terminated by either the downturn in car sales - which has hurt Mercedes just as severely as BMW, Toyota and Honda - or, more likely, by McLaren's plans to market a high-performance road car in direct competition with the top of the range Mercedes. That was reportedly as badly received in Stuttgart as the news in January 2007 that McLaren had successfully offered 30% of the company to a Middle East consortium.

'The German firm now has what it wanted: a Mercedes Formula One car from stem to stern; a return to the Silver Arrows in the tradition of the all-conquering cars of the 1930s and 1950s. The caveat about motor manufacturers having boards of directors capable of cancelling the Formula One budget at a stroke of a pen still applies but Daimler AG would be unlikely to invest so heavily in Brawn if there is a nagging doubt that the plug might need pulling in 18 months or two years.' - Maurice Hamilton, The Guardian

'This represents a major power shift in Formula One. This takeover is going to turn the Brawn team into a long-term major player to rank alongside McLaren and Ferrari. With the history and commitment of Mercedes-Benz behind them they are going to be a team to be reckoned with for years to come. I expect them to be extremely ambitious in terms of winning races and ultimately championships.

'The impact of this will be felt almost immediately, certainly by the start of next season. Next season's cars are going to be a return to the Silver Arrows of the past and by having this huge company take over the reins at Brawn, it will give the team confidence for its future. The takeover will help Brawn improve its strategic planning and advance its ability to make the most out of every challenge it faces.

'In the long run the team will be looking to hire the very best drivers. It will come as no surprise to see the likes of Sebastian Vettel in a Mercedes car in 2012 and maybe even Lewis Hamilton could end up there, although Ferrari is another long-term option for Lewis. ' - Edward Gorman, The Times

'While Mercedes' takeover of Brawn might seem a gamble in the current climate, with the automotive sector on its knees and other car-makers such as Honda, Toyota and BMW fleeing F1 like rats off a sinking ship, it was in the end almost a no-brainer for the German manufacturer.

'On a financial level, the risk is less acute than one might imagine. The deal, reported to be worth £110 million, is being funded almost exclusively by an Abu Dhabi sovereign wealth fund. Of the 75.1 per cent of the team sold by Brawn, Mercedes' parent company, Daimler, is taking a 45 per cent stake and Aabar is shelling out directly for 30 per cent.

'However, Aabar - part of the IPIC sovereign fund run by Sheikh Mansour of Manchester City fame - has simultaneously expressed an intention to increase its stake in Daimler from nine to 15 per cent. In other words, it appears to be bankrolling the entire deal.

'Sure, Mercedes could have stayed wedded to McLaren and won many more world titles but it would not have done so on its own terms; with German drivers at a full Mercedes works team. This is a bold move to return the famous Silver Arrows to the front of the pack for the first time since the 1930s, and that can only be exciting for Formula One.' - Tom Cary, The Telegraph

'Ross Brawn stands to make £100million profit in 12 months after Mercedez-Benz announced they are taking over the Brawn GP Formula One team.

'Mercedes-Benz will head up their own team next season after taking a 75.1 per cent share in the British-based constructors.

'Team principal Brawn, who paid Honda just one euro for the team a year ago, will remain in his role.

'The team will become known as Mercedes Grand Prix, with Brawn in control, while Mercedes-Benz Motorsport vice-president Norbert Haug will work with the F1 team and the engine team of Mercedes-Benz High Performance Engines.

'As part of the deal, Mercedes' parent company Daimler AG relinquished their 40 per cent stake in McLaren, but will remain their engine suppliers for the next six seasons.' - The Daily Mail

'The £1 Ross Brawn paid to take over Honda produced returns as spectacular as his team when Mercedes took control yesterday.

'Not only did it confirm his own fortune, it guaranteed the jobs of a 400-strong workforce for the long-term future in a deal which will cost Mercedes-Benz a bargain £200million.

'Brawn, who retains 25 per cent with chief executive Nick Fry, was bought out for £100m, with the other half of the money headed to McLaren in engines and funding until 2015.' - Bob McKenzie, The Daily Express

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