• search

F1 carmakers welcome CVC takeover of F1

Written by: Staff

LONDON, Mar 21 (Reuters) Formula One carmakers who have been threatening their own series from 2008 welcomed clearance of a planned takeover of the sport's commercial rights by private equity firm CVC today.

The European Commission approved the deal, conditional on CVC selling its Spanish subsidiary Dorna that controls the rights to the MotoGP championship.

The confirmation from Brussels had been eagerly awaited by the carmakers, who are close to a deal with Formula One supremo Bernie Ecclestone that would prevent a damaging split in the glamour sport.

''The GPMA manufacturers and their teams welcome and support the EU clearance of the planned acquisition,'' the Grand Prix Manufacturers' Association said in a statement.

''Since CVC announced its intention to acquire SLEC, significant progress in the discussions about the commercial future of Formula One has been made.

''Today's approval was actively supported by the GPMA manufacturers and teams and they are optimistic that it will create additional momentum for the ongoing negotiations.'' Under the deal, CVC are taking a majority shareholding in the SLEC holding company that controls Formula One's commercial rights.

The five carmakers are Renault, BMW, DaimlerChrysler's Mercedes, Honda and Toyota.

They have been threatening their own series from the end of 2007, when an existing commercial agreement expires, unless they are given far more of the sport's revenues and there is greater transparency in the way Formula One is run.

However, talks with Ecclestone before the season-opening Bahrain Grand Prix left them close to agreeing a memorandum of understanding on the commercial issues.


For Daily Alerts

For Breaking News from Oneindia
Get instant news updates throughout the day.

Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more