Renault buys Lotus F1, returns to Formula 1 as a constructor

Renault has announced that it will return to Formula One as a works team in 2016. In September, the French company had signed a letter of intent to take over the Lotus F1 team. Now the takeover has been completed.

The Lotus F1 team has been struggling financially. This team, based in Oxfordshire, UK was previously known as Benetton, Renault F1 Team and Lotus Renault GP.

Renault had been supplying engines to the Red Bull Racing team from 2007. The team won four World Drivers' Championships and World Constructors Championships' from 2010 to 2013. In 2015, relations between the two soured and Red Bull began seeking a new engine supplier.

Renault believed that it had two options - return to the sport as a constructor or leave. It decided to choose the former.

However, after failing to strike a deal with Mercedes or Honda, the Austrian company decided to stick to Renault engines for 2016.

Note: Image used for representation purpose only.