CHINESE SPORTSWEAR GIANT Anta Sports Products has announced that it will become the largest shareholder in German sportswear maker Puma SE after agreeing to acquire a 29.06% stake for €1.5 billion ($1.8 billion).
Anta will purchase around 43 million Puma shares at €35 per share from Artémis, the investment holding company of France’s billionaire Pinault family. The acquisition marks a significant step in Anta’s single-focus, multi-brand and global expansion strategy.
Puma shares surged 17% initially and were up 9% by 1130 GMT, still near their lowest levels in a decade. The German sportswear brand currently has a market capitalisation of approximately €3.2 billion.
China’s largest athletic apparel company has been steadily strengthening its international presence. Anta owns several global sportswear brands, including Fila, Descente and Jack Wolfskin, the latter of which it acquired last year in a $290 million deal. In 2019, an Anta-led consortium paid $5.2 billion for Amer Sports, the parent company of premium brands such as Salomon and Arc’teryx, with the aim of catering to China’s growing affluent consumer base.
Puma has more scope for growth in China, a senior Anta executive told Reuters. “Puma has more potential in the Chinese market, where they are underrepresented with only 7% of their global revenues. We have a lot of insight on how to make Puma more successful in China,” said Wei Lin, Anta global vice-president for sustainability and investor relations.
Anta said Puma complements its existing brands and could help it compete better internationally.
Puma, meanwhile, has been attempting to revive consumer demand after a challenging period marked by sluggish growth. The company recently appointed Arthur Hoeld as chief executive and initiated a broader leadership refresh. Despite these efforts, Puma’s shares have declined by more than 30 per cent over the past year.
