In a major strategic move, China's largest sportswear retailer, Anta Sports, is set to acquire a controlling 29% stake in the iconic German brand Puma, positioning itself as the company's top shareholder. The deal arrives as Puma seeks to regain its footing amid intense market competition.
Anta will purchase the stake from the French luxury group Kering, controlled by the Pinault family, for €1.51 billion ($1.8 billion) in cash. The offer of €35 per share represents a significant 62% premium over Puma's recent trading price, reflecting strong confidence in the brand's potential. News of the transaction initially sent Puma's shares soaring 17%, with gains settling at 9%.
A Turnaround Opportunity
The investment provides a crucial vote of confidence for Puma, which has faced significant headwinds. Its shares had been languishing near decade lows following a challenging period marked by stiff competition from rivals like Nike and Adidas. Last year, the company announced a major restructuring plan that included cutting approximately 1,400 jobs and streamlining its product offerings.
For Anta, the acquisition is a key pillar of its global expansion strategy. The Chinese firm has built a portfolio of Western brands, including Finland's Amer Sports—owner of Arc'teryx and Salomon—and the German outdoor label Jack Wolfskin.
Eyes on the Chinese Market
A central driver of the deal is unlocking Puma's growth in China, where Anta believes the brand is significantly underrepresented. Puma currently generates only about 7% of its global revenue from the Chinese market.
"We have a lot of insight on how to make Puma more successful in China," said Wei Lin, Anta's global vice president for sustainability and investor relations. The company plans to leverage its deep domestic expertise and distribution network to expand Puma's presence.
Following the deal's completion, Anta is expected to secure representation on Puma's board, signaling an active role