Porsche has confirmed it is no longer in negotiations to join forces with Red Bull in Formula One following several months of talks.
Porsche was planning to enter F1 at the start of the new engine regulations in 2026 and was in negotiations with Red Bull about partnering with the team.
It had hoped to secure a 50 percent shareholding in Red Bull Technologies, the parent company of the race team, but Red Bull was wary of giving up control of its team and instead offered Porsche the opportunity to invest in its new powertrains division.
In a statement on Friday, Porsche announced the deal had fallen through.
"In the course of the last few months, Dr. Ing. h.c. F. Porsche AG and Red Bull GmbH have held talks on the possibility of Porsche's entry into Formula One," the Porsche statement said. "The two companies have now jointly come to the conclusion that these talks will no longer be continued.
"The premise was always that a partnership would be based on an equal footing, which would include not only an engine partnership but also the team. This could not be achieved. With the finalised rule changes, the racing series nevertheless remains an attractive environment for Porsche, which will continue to be monitored."
ESPN understands Porsche is still exploring options to enter the sport despite the Red Bull deal falling through.
Speaking at last weekend's Dutch Grand Prix, Red Bull team principal Christian Horner said it was important for Red Bull to retain full control of the F1 team.
"We are an independent team and that's always the way we've operated in terms of being flexible and the ability to move quickly and efficiently, and that's part of the DNA of what Red Bull is," he said. "The powertrain is obviously a different challenge, and of course if there was a partner to potentially look at working with on the powertrain that would make logical sense.
"Our position is obviously the team is the biggest marketing asset globally for Red Bull, and why would we compromise that strategically for the long term? 2026, we're fully committed, we've recruited some of the best talent in Formula One, within Red Bull Powertrains, we've created a factory within 55 weeks, with fully commissioned dynos, we've built our first prototype engine for 2026 and run that prior to the summer break.
"So we're on a really exciting trajectory that isn't dependent on outside involvement or investment. Strategically if there's the right partner then of course it's something that the group would be very interested in."
The new Red Bull Powertrains factory is based at the same facility as the team's existing headquarters and will produce power units to F1's next set of regulations for both Red Bull and sister team AlphaTauri.