Daimler, Aabar take full control of F1 team Mercedes GP

Daimler took majority stake in Formula One team after buying out team principal Ross Brawn
Daimler, Aabar take full control of F1 team Mercedes GP
Daimler bought team principle Ros Brawn for an undisclosed sum
By Reuters
Tue 01 Mar 2011 10:25 AM

Daimler and its largest shareholder,  Abu Dhabi's
sovereign wealth fund Aabar Investments, took full control of Formula 1 racing
team Mercedes-Benz GP after buying out team principal Ross Brawn.

Daimler Chief Executive Dieter Zetsche said the move
demonstrated the company's determination to succeed on the racing circuit where
Mercedes finished fourth last season behind Ferrari, champions Red Bull and
former partner McLaren.

"Our company's founders invented the automobile
125 years ago and the very first Mercedes was a racing car. These are the
reasons why we see our Formula 1 programme as an important element of our brand
history," he said in a statement.

"The acquisition of a majority stakeholding in
our Silver Arrows team sends a clear signal that we intend to achieve technical
and sporting success on world motorsport's biggest and most important stage - and
to do so in cost-effective conditions."

No financial details were provided.

After buying Brawn's 24.9 percent stake, Daimler
increased its stake from 45.1 per cent to 60 percent, while Aabar boosted its
holding from 30 to 40 percent.

"Aabar's and Daimler's joint investment in
Mercedes-Benz Grand Prix is a further testament to our strong commitment to the
sport of Formula 1 and to Aabar's strategic partnership with Daimler,"
Aabar Chairman Khadem Al Qubaisi said in a statement.

"As Abu Dhabi is increasingly placing itself as
a recognised host of international sporting events, and particularly in light
of the continuing success of the Abu Dhabi Grand Prix, Aabar is proud to be
supporting one of the most successful Formula 1 racing teams in the
field," Al Qubaisi added.

The last time Daimler won the Constructors'
Championship was back in 1998, when it held 40 percent of McLaren-Mercedes and
Mika Hakkinen and David Coulthard were the pilots.

Since then, criticism of Daimler's continued
investment in the sport has repeatedly surfaced, particularly when fellow
German premium carmaker BMW dropped out entirely in 2009 after failing to nab
the Constructors' Championship.

Daimler initially scored a public relations coup by
luring former Ferrari pilot Michael Schumacher of Germany out of retirement to
drive for Mercedes GP last season, only to see him finish two spots behind team
colleague Nico Rosberg and ninth in the Drivers' Championship.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.