China’s Anta becoming top Puma shareholder with $2.3 billion stake

HONG KONG – China’s Anta Sports Products has agreed to buy a stake of about 29 per cent in Puma SE for €1.5 billion (S$2.3 billion), becoming the biggest shareholder in the German company and expanding its portfolio of Western athletic brands. 

The deal will see Anta buy about 43 million Puma shares from Artemis, holding company of France’s billionaire Pinault family, at €35 each, Anta said in a filing to the Hong Kong stock exchange on Jan 27. That is a 62 per cent premium to Puma’s last close. The transaction is expected to close by the end of 2026.

The Puma stake purchase builds on Anta’s growing portfolio of Western brands to capture rising Chinese consumer demand for athleisure products post-Covid-19.

The stake purchase could pave the way for a full takeover of Puma, though Anta said on Jan 27 it currently does not have such a plan.

The Puma investment will accelerate Anta’s globalisation “and help drive the next chapter of growth for the global sports markets including China,” said Anta chairman Ding Shizhong. “We believe Puma’s share price over the past few months does not fully reflect the long-term potential of the brand.”

China’s biggest athletic apparel maker has been on a global brands-shopping spree and owns international sportswear labels including Fila, Descente and Jack Wolfskin. In 2019, an Anta-led consortium paid US$5.2 billion for Amer Sports, owner of names such as Salomon and Arc’teryx.

The acquisitions have helped Anta capture China’s growing enthusiasm for outdoor sports to become one of the country’s fastest-growing sportswear and equipment firms. A multi-brand strategy has helped it post stronger sales than key mass market rivals – from international brands like Nike and adidas to local peers like Li Ning – despite consumer weakness and fierce price wars among retailers.

Still, analysts cautioned that the Puma deal could further weigh on its namesake mass market label, which has revised down its 2025 revenue target. 

“The Anta brand was facing challenges stemming from strategy missteps. We argue that Anta’s management resources may face additional dilution risks as a result of the Puma acquisition,” Jefferies analysts said in a note, adding that Puma is a well-known label in China, making it difficult for Anta to achieve brand freshness. 

Meanwhile, Anta’s stock has lost about a quarter of its market value since August, in part because investors have factored in an acquisition of Puma, Citigroup analysts wrote in a note. However, they said Puma could see “significant upside” in its China business due to synergy in areas like branding, supply chain and distribution.

Puma has been working to reignite demand after struggling to generate momentum with consumers in recent years, installing Mr Arthur Hoeld as chief executive and moving to refresh its leadership ranks. Puma closed on Monday at €21.63. Its shares have fallen more than 30 per cent over the past 12 months. BLOOMBERG