Chinese firm buys majority stake in Puma for $1.8B
What's the story
In a major development, Chinese sportswear giant Anta Sports Products has announced its plan to acquire a 29.06% stake in German rival Puma. The deal, worth €1.51 billion ($1.79 billion), was confirmed by the company on Tuesday. The acquisition will make Anta the largest shareholder of Puma, surpassing Artemis, the holding company of France's billionaire Pinault family, which was a major shareholder.
Acquisition details
Anta's strategic move and financing secured
Anta will acquire around 43 million Puma shares at €35 each from Artemis. This transaction is in line with Anta's "single-focus, multi-brand, and globalization" strategy. The company has been working with an advisor to explore acquisition opportunities related to Puma. Despite initial talks stalling over valuation concerns earlier this month, the deal has now been agreed upon, pending antitrust clearances and regulatory approvals.
Market dynamics
Anta's global expansion and Puma's struggle
Anta, China's biggest athletic-apparel maker, has been expanding its global footprint by acquiring international sportswear brands such as Fila, Descente, and Jack Wolfskin. The company also led a consortium that bought Amer Sports in 2019 for $5.2 billion. Meanwhile, Puma has been struggling to regain consumer interest and confidence under its new CEO Arthur Hoeld.
Financial outlook
Puma's recent performance and Anta's expectations
Puma's shares have fallen over 30% in the last year, closing at €21.63 on Monday. In contrast, Anta has a market value of $27.3 billion despite a 7% decline in Hong Kong over the past year. The deal is subject to antitrust clearances and regulatory approvals in China and other jurisdictions. Anta plans to hold an extraordinary general meeting with closing targeted after conditions are met.