Mercedes-Benz has announced that it has taken over the Brawn Formula 1 team and re-named it Mercedes Grand Prix after buying a 75.1 per cent stake in the squad.

The German car giant will retain its role as McLaren's engine supplier until at least 2015, but will sell its 40 per cent stake in the squad back to the team over the next two years.

"Mercedes will compete in the F1 world championship next year starting with its own factory team," said head of Mercedes cars, Dr Dieter Zetsche.

"This is possible by the agreed acquisition of 75.1 per cent of Brawn GP, 45.1 per cent from Daimler and 30 per cent from our partner Aabar Investments. The rest will be with the current share - Ross Brawn, Nick Fry and other members. The interests of Daimler are aligned therefore it will be a true Mercedes-Benz team.

"Ross Brawn will continue to be the team principal and thereby we are maintaining his strength. Just like the engine team at Mercedes Benz High Performance Engines, the new Mercedes Benz grand prix team will be co-ordinated by Mercedes Benz Motorsport which is as everybody knows headed by Norbert Haug."

The team will be run out of Brawn's current headquarters in Brackley, rather than from a new facility.

Team principal Brawn said that he could not have imagined such a partnership happening 11 months ago when Honda announced it was pulling out of F1, leading to a winter of uncertainty for the squad that was soon to become Brawn.

"Both I and my fellow directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances," he said.

"The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honoured to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team."

The deal means that Mercedes will compete in Formula 1 as a full factory team for the first time since Juan Manuel Fangio won the world title in 1955.

Neither driver has yet been announced for the new squad. 2009 driver Rubens Barrichello has already joined Williams for next season while Jenson Button has yet to decide on his future.

AUTOSPORT understands that Nico Rosberg will be one of Mercedes' drivers, while the company's motorsport chief Norbert Haug said on Sunday that discussions have taken place with former BMW Sauber driver Nick Heidfeld.

German car giant Mercedes has bought the Brawn Formula 1 team in a move that is likely to see Jenson Button join McLaren as Lewis Hamilton's team-mate.

Mercedes will buy 75% of Brawn in partnership with an Abu Dhabi investment company but will continue as McLaren's engine partner until 2015.

Brawn, who won both world titles in their debut season in 2009, will be rebranded as Mercedes Grand Prix.

Nico Rosberg will be their lead driver, with Nick Heidfeld his likely partner.

Fellow German Timo Glock, who drove for Toyota last season, is also a possibility.

The team has not yet confirmed Rosberg, who drove for Williams in 2009, but he is widely known throughout F1 to have already signed for the Mercedes team.

As part of a deal that will see the McLaren Group buy back Mercedes's 40% shareholding by 2011, the German company will continue to supply free engines and sponsorship to the team for at least the next six years.

It's a win-win situation, both for McLaren and Daimler

Ron Dennis
McLaren boss
The team's official name will remain Vodafone McLaren Mercedes.

McLaren chairman Ron Dennis described the deal as "a win-win situation, both for McLaren and Daimler".

Button, who won the drivers' title this year, has been trying to secure a pay-rise from his £3.5m salary but it seems Mercedes is not interested in keeping him on.

He and his manager Richard Goddard visited McLaren on Friday and Button is now expected to join the Woking-based team for a salary around double what Brawn were offering.

Button's decision is understood not to be solely about money - sources say he considers McLaren might have a more competitive car than Brawn in 2010.

Finn Kimi Raikkonen, who has been forced to leave Ferrari to make way for Fernando Alonso, remains an outside possibility for the seat alongside Hamilton.

Mercedes Sports boss Norbert Haug said on Sunday that he was trying to secure a drive for Heidfeld, a former Mercedes protege who has driven for BMW since 2006.

"We are speaking with Nick Heidfeld as well," Haug told the German news agency DPA.


Button and Hamilton are likely to end up as McLaren team-mates
"Mercedes-Benz supports the idea of signing an experienced and capable German driver. There is however no reason to finalise the driver situation too hastily."

Ross Brawn will stay on as team principal.

He and chief executive Nick Fry will retain a 24.9% shareholding in the team. The remaining 75.1% will be split between Mercedes, which will own 45.1% and Abu Dhabi company Aabar Investments, which will own 30%.

Brawn said: "Brawn GP has been through an incredible journey over the last 12 months. From fighting for our survival to forging a strong relationship with Mercedes-Benz High Performance Engines, winning both the constructors' and drivers' world championships, and now accepting Daimler and Aabar's offer to buy our team, which will secure its future."

McLaren and Mercedes said one of the reasons for them to split was because of McLaren's road-car building ambitions.

McLaren is launching a high-performance sports car called the MP4-12C in 2011.

606: DEBATE
Mercedes buy into a team that has the championship once compared to several times by McLaren

Rhodsey_F1
Dennis said: "I've often stated that it's my belief that, in order to survive and thrive in 21st Century Formula 1, a team must become much more than merely a team.

"That being the case, in order to develop and sustain the revenue streams required to compete and win grands prix and world championships, companies that run Formula 1 teams must broaden the scope of their commercial activities.

"In the MP4-12C, which will be introduced to market in 2011, we have a car that has inherited the genes of the iconic McLaren F1 of 1994 and has already been the subject of much global media acclaim."