Puma shares surge 20% after Anta Sports activities buys stake for $1.8 billion

Shares of Puma surged as a lot as 20% Tuesday, after China’s Anta Sports activities mentioned it could purchase a 29% stake within the German sportswear firm from the Pinault household.

Anta pays 1.5 billion euros ($1.78 billion), or 35 euros per share, to take a 29.06% stake in Puma and turn out to be the most important shareholder within the firm.

The deal got here as Puma has struggled to revive gross sales and comply with via on a enterprise overhaul after Arthur Hoeld, a former Adidas government, took the reins final yr.

Puma shares pared good points barely after the open and have been final buying and selling up 16%.

The 1.5 billion-euro valuation seems “affordable” in comparison with peer multiples within the sportswear sector, notably given Puma’s present “loss-making standing,” mentioned Melinda Hu, China shopper analyst at Bernstein.

“Anta is actually shopping for a model with deep heritage and traditionally sturdy merchandise at a distressed valuation,” Hu added.

The deal builds on Anta’s efforts to broaden its foothold exterior of China, the place it has confronted rising competitors from the likes of Nike and Adidas.

By leveraging Puma’s heritage, Anta may diversify into a brand new product class and markets the place it has not established a robust foothold, Hu mentioned.

Anta has a observe document of increasing world footprints by buying and revamping Western sports activities and way of life manufacturers. In 2019, it led a consortium to accumulate Amer Sports activities, whose portfolio options Wilson, Arc’teryx, Salomon and Atomic.

“Puma fills the mass-market athletic footwear and sports activities way of life hole — a phase positioned between Nike, Adidas and price range manufacturers,” mentioned Julia Zhu, accomplice and head of shopper retail at consultancy agency CIC.

Puma is powerful in Europe and Latin America however weak in China and North America, which creates “minimal overlap and most synergy potential,” Zhu added.

With the Puma stake acquisition, “the group is predicted to additional improve its presence and model recognition within the world sorting items market,” Anta mentioned in a press release Tuesday.

Puma’s shares got here beneath heavy strain final yr, falling almost 50%, in response to LSEG knowledge, as U.S. President Donald Trump’s tariff coverage rattled traders and retailers grew nervous that tariffs may hit shopper demand. It has fallen over 3% to date this yr.

The corporate mentioned final yr that it deliberate to chop its product vary, reduce reductions, enhance advertising and marketing and slash 900 company jobs as a part of a broader cost-cutting plan.

“This isn’t a takeover [as] Anta doesn’t have full management and Puma stays an unbiased firm with its personal administration,” Hu famous. Reuters reported Tuesday that Anta administration group mentioned they might converse to counterparts at Puma “very first thing this morning.”

The Anta-Puma deal additionally got here as world companies more and more reassess their dangers and returns, within the face of expertise disruptions, heightened geopolitical uncertainty, and business consolidation.

“Corporations will make bolder strikes to double down on some elements of their world footprint and reduce publicity to much less favorable elements,” in response to a survey by Bain & Firm launched Tuesday. Greater than half of surveyed firms have been getting ready property on the market within the coming years, Bain mentioned, pushed by the will to sharpen enterprise focus, unlock money, and capitalize on greater valuations in at present’s market.

World dealmaking exercise has roared again into life since final yr, with deal worth surging 40% to $4.9 trillion, the second-highest deal worth on document, in response to Bain.

The consultancy expects world dealmaking momentum to maintain in 2026, citing easing geopolitical tensions and deeper capital swimming pools as non-public fairness and enterprise capital corporations look to exit the rising backlog of property.

In the meantime, firms “urgently have to reinvent themselves to get out forward of the massive forces of expertise disruption, a post-globalization economic system, and shifting revenue swimming pools,” mentioned Suzanne Kumar, government vice chairman of Bain’s world M&A and Divestitures follow.