Anta Sports snares 29% stake in Puma for $1.8 bn, becomes top shareholder

The stake sale comes as the German firm seeks to revive its fortunes after it lost ground to Nike and Adidas and also faces competition from fast-growing brands like New Balance and Hoka

China's Anta Sports Products said on Tuesday it would buy a 29.06 per cent 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 Hong Kong-listed company will pay 35 euros per share in cash for 43 million Puma shares, Anta said in a stock exchange filing. The price is a 62 per cent premium to Puma's 21.63 euros closing share price on Monday, up nearly 17 per cent in the session. Anta shares rose 3.4 per cent in early trading on Tuesday. 

The stake sale 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. 

Reuters was the first to report the deal earlier this month. 

Anta said it believed Puma could increase its international competitiveness and build its brand recognition with the Chinese company as its largest investor. 

It said Anta would seek Puma board seats once the deal was finalised. 

"Its (Puma) global business footprint and focused positioning in sports categories are highly complementary to the group's existing multi-brand and specialised business," Anta said in a statement. 

The deal is expected to help Puma increase its sales in the lucrative mainland Chinese market as Anta expands its multi-brand strategy. 

Anta has a track record of acquiring and revamping Western sports and lifestyle brands, and in 2019, it led a consortium to buy Amer Sports, owner of racquet maker Wilson and mountain sports specialist Salomon. 

Reuters reported in early January that Anta had offered to buy about 29 per cent of Puma from the Pinault family and had secured financing for the acquisition, although talks had at the time stalled over valuation. 

The transaction comes as the German sportswear group struggles to revive sales and investor confidence under its new CEO, Arthur Hoeld. 

In October, Puma said it would provide more discounts, improve marketing and cut its product range, in addition to cutting 900 jobs as part of a turnaround strategy. 

Artemis, run by Francois-Henri Pinault, chairman of luxury group Kering, had previously described its Puma stake as non-strategic. The Pinault family took the holding from Kering in 2018, when the group repositioned itself as a pure luxury player. 

Puma has been under pressure as demand weakened, and recent sneaker launches, including the Speedcat, failed to generate the momentum executives had hoped for. Hoeld, who took over last year, has outlined a turnaround focused on brand heat, performance products, and cost discipline. 

The deal is subject to antitrust clearances, shareholder approval at Anta, and regulatory approvals in China and other jurisdictions. Anta said it expects to convene an extraordinary general meeting, with closing targeted after conditions are met.

 

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