China’s biggest sportswear brand to buy Puma stake for $1.8 billion

Anta Sports Products will buy a 29.06 per cent stake in Puma, the Chinese sportswear company has announced

Anta Sports will buy a significant stake in Puma (Puma)

China's largest sportswear company, Anta Sports Products, has announced a significant move to become the biggest shareholder in German sportswear giant Puma, acquiring a 29.06 per cent stake from the Pinault family for 1.5 billion euros ($1.8 billion).

The deal, which sees Anta pay 35 euros per share in cash, aims to leverage the Chinese firm's expertise to revitalise Puma's sales, particularly within the lucrative Chinese market.

The acquisition marks a strategic step for Anta, owner of Fila and backer of Salomon, as it seeks to expand its global footprint.

The Hong Kong-listed company, valued at $27.8 billion, will purchase the stake from Artemis, the Pinault family's investment vehicle, which also controls luxury conglomerate Kering.

For Artemis, the sale is expected to help reduce its substantial debt load and aligns with its strategy to focus on controlled assets.

Following the announcement, Puma shares initially surged by 17 per cent, settling up 6 per cent by 0915 GMT, despite trading near their lowest levels in a decade.

Anta Sports have announced the significant deal they have struck with Puma (AFP via Getty Images)

The offer represents a substantial 62 per cent premium to Puma's closing share price of 21.63 euros on Monday.

The 3.2 billion euro company has been striving to regain momentum after losing ground to competitors such as Nike, Adidas, and newer brands like On Running.

Anta has expressed confidence in its ability to grow Puma's presence in China, where the brand is currently underrepresented.

Wei Lin, Anta's global vice-president for sustainability and investor relations, stated: "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."

Anta boasts a strong track record of acquiring and revitalising Western sports and lifestyle brands.

It is the largest shareholder of Amer Sports, which owns Salomon, Arc'Teryx, and Wilson, and has successfully grown Salomon into a major sneaker brand.

Anta also directly owns Fila, Jack Wolfskin, Kolon Sport, and Maia Active. Deutsche Bank analysts noted, "Anta has a track record of developing brands and we would expect them to be a more active partner than Artemis."

Puma has faced intense competition, with recent sneaker launches failing to generate anticipated momentum.

CEO Arthur Hoeld, who took over last July, initiated a turnaround plan in October, including 900 job cuts, following 500 layoffs earlier in the year. Anta has affirmed its confidence in Mr Hoeld and his team.

Anta has indicated it will seek board seats at Puma once the deal is finalised but does not intend a full takeover.

The transaction is subject to antitrust clearances, Anta shareholder approval, and regulatory approvals in China and other jurisdictions.

Puma is scheduled to report its fourth-quarter results next month, offering insights into the early impact of its strategy to limit discounting, enhance marketing, and streamline its product range.