Anta Sports Eyes Puma: A Potential Takeover Tale

Chinese sportswear company Anta Sports is considering a takeover of German sportswear brand Puma, with potential competition from Li Ning and ASICS. Puma's major shareholder, Artemis, is reviewing its 29% stake. Puma faces challenges including decreased demand and market competition, impacting its financial performance and leading to strategic shifts.

Chinese sportswear company Anta Sports Products is reportedly considering a takeover bid for German sportswear brand Puma, as revealed by a Bloomberg News report on Thursday.

Anta, listed on the Hong Kong stock exchange, is collaborating with an adviser to assess a bid for Puma. The company may even partner with a private equity firm if it proceeds with an offer. Meanwhile, potential competition may come from other interested parties, including Li Ning, another Chinese sportswear group, and Japanese sportswear firm ASICS. Neither Anta Sports, Puma, nor ASICS responded to Reuters' requests for comments. However, Li-Ning stated in an email to Reuters that it had not engaged in any direct negotiations or evaluations of the reported transaction and remains focused on growing its brand.

Artemis, Puma's largest shareholder which controls a 29% stake, is exploring its options but had previously indicated reluctance to sell at current market values. The Pinault family acquired this stake in 2018 when Kering focused on becoming a luxury brand leader. Puma's market valuation stands at 2.52 billion euros. As the company steers through lower demand and competitive market pressures, its new CEO Arthur Hoeld has announced strategies such as reducing discounts and cutting 900 corporate jobs. Puma's shares have suffered, halving since the beginning of the year amid intensified market competition.

(With inputs from agencies.)