China’s biggest sportswear brand Anta Sports Products said on Tuesday it would buy a 29.06% stake in Puma from the Pinault family for 1.5 billion euros ($1.8 billion), making it the biggest shareholder in the German sportswear maker. The deal is expected to help Puma increase its sales in the lucrative Chinese market and help Anta in its quest to become a more globalized business.
The $27.8 billion Hong Kong-listed sportswear company will pay 35 euros per share in cash to Pinault family holding company Artemis, which also controls Paris-listed luxury conglomerate Kering. The deal will help Artemis reduce its high debt load. The offer represents a 62% premium to Puma’s closing share price of 21.63 euros on Monday and comes as the German firm seeks to revive its fortunes after it lost ground to Nike and Adidas. It also faces competition from fast-growing brands like New Balance and Hoka. “We believe Puma’s share price over the past few months does not fully reflect the long-term potential of the brand,” Ding Shizhong, Anta’s chair, said in a statement. “We have confidence in its management team and strategic transformation.” Puma shares jumped 15% in premarket trading, while Anta shares were up 1.6% in late afternoon trade, versus a 1.3% rise for the broader Hong Kong index
