China's Anta to Acquire 29 Percent Stake in Puma

(MENAFN) Anta Sports Products, China's dominant sportswear retailer, will capture a 29% stake in German athletic brand Puma, positioning itself as the company's largest shareholder. The legendary brand faced significant headwinds before the transaction, with stock prices hovering near decade-low territory.

The Chinese enterprise will acquire its position from the Pinault family, among France's wealthiest dynasties. They command luxury powerhouse Kering, parent company to prestigious labels including Bottega Veneta, Gucci, and Yves Saint Laurent. The Pinaults originally secured controlling interest in Puma in 2007 but have progressively decreased their holdings since.

Fujian-based Anta committed to delivering the family €1.51 billion ($1.8 billion) in cash for 43.01 million shares priced at €35 apiece. The proposition represented a 62% premium above Puma's Monday closing stock value of €21.63, triggering a 17% surge in the German manufacturer's shares after initial disclosure of the transaction. Trading prices subsequently stabilized at 9% gains.

Puma has recently confronted mounting pressure from intensifying rivalry among athletic apparel competitors. Last year, the corporation revealed it was eliminating approximately 1,400 positions and unveiled a restructuring blueprint featuring restrictions on discounting and reductions to its merchandise portfolio.

Anta has declared intentions to amplify the brand's footprint across China. "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," Wei Lin, the company's global vice president for sustainability and investor relations, told media.

The Chinese corporation additionally plans to obtain board representation at Puma once the transaction concludes, according to media.

Anta has previously absorbed multiple Western brands, including Finland-headquartered Amer Sports, which controls Arc'teryx, Salomon, and Wilson, alongside German label Jack Wolfskin.

The latest acquisition signals a "major step forward in our 'single-focus, multi-brand, globalisation' strategy," Ding Shizhong, the chairman of the group, told Chinese media.

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