China’s Anta Sports Set to Become Top Shareholder of Puma

In an effort to increase its global footprint, Chinese athletic goods conglomerate Anta Sports announced on January 27 that it will pay US$1.79 billion to acquire a majority stake in the venerable German sportswear company Puma. According to the statement to the Hong Kong exchange, Anta will purchase 43 million shares from the Artemis group, owned by the French billionaire Pinault family, for 35 euros each, giving it a 29% holding. Bloomberg data indicates that the price, which values the purchase at 1.51 billion euros, is more than 60% higher than Puma's most recent closing.

Anta Expanding its Global Footprints with Puma Deal

According to Anta's statement, the investment will increase the company's visibility and brand awareness in the international athletic goods market, which includes China.  The company feels that Puma's share price during the last few months does not accurately reflect the brand's long-term potential, according to Anta Chairman Ding Shizhong.

According to the statement, Anta had no intention of acquiring Puma in its entirety. Anta stated that it will carefully consider whether the two parties can further strengthen their collaboration in the future. The company is one of the biggest sportswear manufacturers in the world and is headquartered in the southeast Chinese province of Fujian.

Background of Anta Sports and Puma

Founded in 1991, Anta Sports is the parent company of numerous international brands, such as Wilson, Arc'teryx, and Salomon, through its subsidiary Amer Sports. Leading a partnership, Anta completed the purchase of Finland-based Amer in 2019 for a total estimated value of US$5.2 billion. Additionally, it controls rights for international sportswear companies like Fila and Descente in the sizable Chinese market.

However, Puma has been having trouble with low demand lately, and in the third quarter of last year, sales fell by more than 15%. The brand was enduring a "reset" last year to enhance its brand heat, distribution quality, and product offering, according to CEO Arthur Hoeld, who assumed control of the company last year. He has stated that the brand had become too commercial.

Puma is well-known throughout the world for its sports and casual footwear, such as Puma Clyde. The brand is also known for its partnerships with pop sensations Rihannna and Dua Lipa, as well as Rose from Blackpink. Europe, Latin America, Africa, and India are among its major sports markets. Its product line includes a variety of sports, including basketball, motorsport, jogging, football and training.