Audi has allegedly acquired the entire McLaren Group according to a report published on Monday by Britain's Autocar, a deal that - if confirmed - would secure the German automotive company's entry into Formula 1.
The McLaren Group which includes McLaren Racing has struggled financially in the past 18 months as sales of its automotive division bore the brunt of the global Covid pandemic.
Since 2020, the group has undergone several capital raises and financial restructuring initiatives, receiving last summer a £550 million injection from new and existing shareholders, including from investment firm Ares Management Corporation and Saudi Arabia's Public Investment Fund.
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The recapitalization move was conducted to help support McLaren's "growth plans as a global luxury supercar and elite motorsport business".
McLaren Racing also recently restructured its shareholder base, selling a 15 percent interest in the entity to US sports agency MSP Sports for £185 million, a stake the latter would like to increase in the future.
Beyond the broader implications for McLaren's road car division, Audi's takeover - if confirmed - would ensure the four-ring brand's entry into Formula 1, with the prospect of Audi powering McLaren's cars from 2026 when the sport introduces its new engine regulations.
However, the McLaren-Audi tie-up would not preclude Porsche from partnering on its side with an F1 outfit, with speculation ramping up that Red Bull, which is setting up its own powertrains department, would be its partner of choice.
Despite Autocar's confidence that a deal has been signed and sealed between Audi and McLaren, neither company has confirmed the takeover. Furthermore, various reports in the media are speculating that BMW has also put in a bid for McLaren.
Also, the fact that Autocar's report offers no insight, hard numbers or details about a transaction between Audi and McLaren warrants a high degree of skepticism, at least for now.
The rumour mill is furiously spinning, but where will it stop? Stay tuned...
Update: Unsurprisingly, the McLaren Group how moved to deny the media report claiming that it has been sold to Audi.
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