Signage at an Anta Sports Products Ltd. pop-up store in Beijing, China, on Saturday, Aug. 24, 2024. Anta is scheduled to release earnings results on Aug. 27.
Na Bian | Bloomberg | Getty Images
Shares of Puma surged Tuesday after China’s Anta Sports said it would acquire a 29% stake from the French billionaire Pinault family, as the German sportswear company works to turn itself around amid struggling sales and brand momentum.
Anta will pay 1.5 billion euros ($1.78 billion), or 35 euros per share in cash, to take a 29.06% stake in Puma. The deal would make Anta Puma’s largest shareholder, however, Anta said it has “no current plans” to make a takeover offer, which would be required under German securities laws at 30% ownership.
Puma shares rose as much as 20% in early trading but later pared gains. The stock was last seen trading 9.4% higher at 23.7 euros, but is still trading close to its 10-year low.
The deal, which is expected to close by the end of the year and subject to regulatory approvals, comes as Puma has struggled to revive sales and follow through on a business overhaul after Arthur Hoeld, a former Adidas executive, took the reins last year.
It could also help Hong Kong-listed Anta increase its global footprint.
Puma
Anta has a track record of expanding global footprints by acquiring and revamping Western sports and lifestyle brands. In 2019, it led a consortium to acquire Amer Sports, whose portfolio features Wilson, Arc’teryx, Salomon and Atomic. The Puma deal further underpins Anta’s global expansion and multi-brand growth strategy, said Metzler analyst Felix Dennl, adding that the market will likely view the investment as a boost to Puma’s ongoing turnaround efforts.
Hoeld’s turnaround plan has so far involved cutting jobs, narrowing the firm’s product range, and improving marketing operations, and the company referred to 2025 as a “year of reset.”
The 1.5 billion-euro valuation appears “reasonable” compared to peer multiples in the sportswear sector, particularly given Puma’s current “loss-making status,” said Melinda Hu, China consumer analyst at Bernstein.
“Anta is essentially buying a brand with deep heritage and historically strong products at a distressed valuation,” Hu added.
The deal builds on Anta’s efforts to expand its foothold outside of China, where it has faced growing competition from the likes of Nike and Adidas. By leveraging Puma’s heritage, Anta could diversify into a new product category and markets where it has not established a strong foothold, Hu said.
“Puma fills the mass-market athletic footwear and sports lifestyle gap — a segment positioned between Nike, Adidas and budget brands,” said Julia Zhu, partner and head of consumer retail at consultancy firm CIC.
Puma is strong in Europe and Latin America but weak in China and North America, which creates “minimal overlap and maximum synergy potential,” Zhu added.
Turnaround
Puma’s shares came under heavy pressure last year, falling nearly 50%, according to LSEG data, as U.S. President Donald Trump’s tariff policy rattled investors and retailers grew nervous that tariffs could hit consumer demand. Coming into Tuesday trading, Puma shares had fallen over 3% so far this year.
“This is not a takeover [as] Anta does not have full control and Puma remains an independent company with its own management,” Hu noted. Reuters reported Tuesday that Anta management team said they would speak to counterparts at Puma “first thing this morning.”
The deal could raise questions for competitor Adidas, particularly in European and Asian markets, as many investors view Anta as a strong operator that could increase competitive pressure, noted UBS analysts. Adidas shares were down 0.7% in mid-morning trading.
Kering shares last traded flat, following some gains in early morning trading.
Global M&A rebound
The Anta-Puma deal also came as global businesses increasingly reassess their risks and returns, in the face of technology disruptions, heightened geopolitical uncertainty, and industry consolidation.
“Companies will make bolder moves to double down on some parts of their global footprint and minimize exposure to less favorable parts,” according to a survey by Bain & Company released Tuesday. More than half of surveyed companies were preparing assets for sale in the coming years, Bain said, driven by the desire to sharpen business focus, free up cash, and capitalize on higher valuations in today’s market.
Global dealmaking activity has roared back into life since last year, with deal value surging 40% to $4.9 trillion, the second-highest deal value on record, according to Bain.
The consultancy expects global dealmaking momentum to sustain in 2026, citing easing geopolitical tensions and deeper capital pools as private equity and venture capital firms look to exit the growing backlog of assets.
Meanwhile, companies “urgently need to reinvent themselves to get out ahead of the big forces of technology disruption, a post-globalization economy, and shifting profit pools,” said Suzanne Kumar, executive vice president of Bain’s global M&A and Divestitures practice.
