Mercedes have bought a majority shareholding of 75.1% in Brawn GP and are set to rename the team Mercedes GP ahead of next season.
The deal, which has been a subject of speculation for a number of months, will see the German car giant take full control of the Brawn team while continuing to supply long-term partners McLaren with engines until at least 2015.
"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% of Brawn GP, 45.1% from Daimler and 30 % 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."
Mercedes are set to continue at Brawn's headquarters and team principal Ross Brawn said their would be few changes to staff and operations at the Brackley plant.
"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 team's driver plans are yet to be confirmed but CEO Nick Fry has told the BBC there will be no extra budget for the team to tempt world champion Jenson Button to stay. He also said, in contradiction to many initial media reports, the team were under no pressure to sign German drivers to appease their new owners.