CCI Approves 3G Capital’s Acquisition of Skechers with GIC Co-Investment

The Acquirers (Beach Parent and Beach Merger Sub) were specifically established for this transaction and are wholly owned by 3G Fund VI LP, a fund managed by affiliates of 3G Capital.

The Competition Commission of India (CCI) has cleared a major global acquisition deal involving the takeover of Skechers U.S.A., Inc., one of the world’s leading footwear and apparel brands, by investment funds managed by 3G Capital Partners LP, along with co-investment support from Kakapo Investment Pte. Ltd., a Singapore-based entity linked to sovereign wealth fund GIC.

The transaction, termed as the Proposed Combination, involves two distinct but interconnected steps:

1. Proposed 3G Transaction – Affiliates of investment funds managed by 3G Capital, namely Beach Acquisition Co Parent, LLC (Beach Parent) and Beach Acquisition Merger Sub, Inc. (Beach Merger Sub), will acquire all outstanding shares of Skechers, thereby assuming sole control of the company.

2. Proposed GIC Investment – An entity under Singapore’s GIC group, referred to as GIC Investor, will provide capital financing for the acquisition. In return, it will receive certain shareholder rights in Skechers, though ultimate control will remain with 3G Capital.

About the Acquirers

The Acquirers (Beach Parent and Beach Merger Sub) were specifically established for this transaction and are wholly owned by 3G Fund VI LP, a fund managed by affiliates of 3G Capital.

Founded in 2004, 3G Capital Partners is a global investment firm that follows an owner-operator approach. Known for its long-term value creation strategy, the firm has previously been associated with high-profile acquisitions and investments in global consumer brands, with a focus on scaling, operational efficiency, and maximizing brand potential.

About GIC’s Role

The GIC Investor, incorporated in Singapore in 2000, is wholly owned by GIC Blue Holdings Pte. Ltd., which in turn falls under GIC (Ventures) Pte. Ltd. GIC is Singapore’s sovereign wealth fund, managing assets globally through subsidiaries such as GIC Special Investments (GICSI) and the Integrated Strategies Group (GICISG).

In this transaction, GIC’s role will primarily be that of a financial co-investor, helping partly finance 3G’s acquisition while holding minority rights, rather than operational control.

About the Target – Skechers U.S.A., Inc.

Skechers, headquartered in the United States, is a global leader in the footwear, apparel, and accessories sector. Its core operations include:

• Footwear – Designing, developing, and marketing a wide variety of lifestyle and performance shoes, including casual, sports, work, and comfort-focused footwear for men, women, and children.

• Apparel and Accessories – Offering diverse categories such as activewear, bags, eyewear, yoga and fitness accessories, and cold-weather products.

• Global Reach – Skechers operates in over 180 countries, with a significant presence in North America, Europe, and Asia, including India where the brand has expanded aggressively in urban retail markets.

Significance of the Deal

The acquisition of Skechers by 3G Capital, supported by GIC, is expected to have far-reaching implications in the global footwear and apparel industry:

• For Skechers – The backing of a global investment powerhouse like 3G Capital could bring renewed operational efficiency, aggressive global expansion, and stronger competitive positioning against rivals such as Nike, Adidas, and Puma.

• For 3G Capital – The deal aligns with its history of investing in consumer-facing global brands, enabling it to leverage Skechers’ established market position while driving further growth.

• For GIC – The investment reinforces its strategy of participating in high-value global consumer businesses, generating stable long-term returns from strong retail brands.

• For India – Given Skechers’ growing footprint in India, this transaction is expected to strengthen its retail expansion, supply chain, and customer offerings in the country’s booming footwear and apparel market.

CCI’s Green Signal

By approving the transaction, the CCI has confirmed that the deal does not raise competition concerns in India, given the global nature of the acquisition and the highly competitive structure of the footwear and apparel industry in the Indian market.

Broader Industry Context

The global footwear market is projected to grow steadily, driven by athleisure trends, rising disposable incomes, and growing health awareness. Skechers, known for its affordability and comfort, has consistently increased its market share worldwide.

This acquisition could mark a new era for the brand, with 3G Capital’s operational expertise and GIC’s financial strength combining to push Skechers into a more aggressive growth trajectory, particularly in emerging markets like India.

The CCI’s clearance of the 3G-GIC transaction for Skechers signals India’s openness to global mergers and acquisitions in the consumer sector. For Skechers, it marks the beginning of a new ownership era, promising both strategic expansion and financial resilience.

As competition in the footwear and lifestyle market intensifies, this acquisition underscores the increasing role of global private equity and sovereign wealth funds in shaping the future of consumer brands worldwide.