Mercedes team boss Toto Wolff has revealed that the German manufacturer was keen to preserve its relationship with independent Formula 1 teams, rather than provide engines to Red Bull.
Red Bull and its sister team Toro Rosso were linked with a switch to Mercedes engines after a disastrous 2015 season in partnership with Renault.
However, the Silver Arrows rejected suggestions of a deal and Wolff has indicated that the organisation's "wish" to continue their support of privateer racing teams was behind the decision.
He told Formula 1.com: "We decided with our board that we as an engine supplier – and as a team – have worked hard and long to achieve the success we have today, after taking the decision to enter the sport again as a works team in 2010.
"Therefore we decided two weeks ago against exploring an engine supply to Red Bull. We wish to continue with our model to support independent, privateer racing teams – and to respect the relationships we already have in place with our customers – alongside our primary focus on the Mercedes works team.
"I have never hidden my opinion. But we take decisions collectively and objectively, evaluating all the pros and cons, and not as individuals."
Red Bull have since been heavily linked with a buyout by Volkswagen.
