China’s biggest sportswear brand, Anta Sports Products, announced it will be taking a 29.06% stake in Puma, valued at €1.5 billion (US$1.8 billion).
The deal is expected to help the German brand in its recovery and increase its sales in China while helping Anta become a more globalised business.
According to Anta board chairman Ding Shizhong, the acquisition will make ANTA the largest shareholder of Puma.
“Working with PUMA, we look forward to learning from each other and joining hands to fully unlock the brand’s full potential,” Shizhong said.
“This will further accelerate ANTA Sports’ globalisation, and help drive the next chapter of growth for the global sports markets including China – creating lasting value for both companies’ consumers and shareholders worldwide.”
Anta also made it clear that it has no current plans to make a takeover offer, which would be required under German securities law at 30% ownership.
The deal is expected to close by the end of the year and comes as Puma has struggled to revive sales and follow through on a business overhaul after Arthur Hoeld, a former Adidas executive, took the reins last year.
This follows a pattern of Anta acquiring and revamping Western sports and lifestyle brands.
Puma CEO Arthur Hoeld acknowledged the acquisition and said that the company’s priorities remain clear to strengthen its global brand.
“Anta aims to empower PUMA to fully realise its brand potential and its heritage to create long-term value for global consumers and stakeholders,” he said.
“We see this as a vote of confidence in PUMA and its strategic direction.”
At the time of writing, Puma (ETR: PUM) stocks grew 9.02% to €23.58. Its market cap is €25.98 billion.
Anta’s (HKG: 2020) stocks were up 2.03% to HK$77.90, and its market cap is HK$214.21 billion.
