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Anta Sports is set to acquire a controlling stake in the well-known German brand Puma, but analysts suggest the Chinese sportswear company may face challenges in replicating its previous successes with overseas investments.
The company will purchase a 29% stake in Puma for EUR 1.5 billion (approximately CNY 12.49 billion), becoming the largest shareholder. The deal involves paying EUR 35 (CNY 291.47) per share in cash, representing a 62% premium over Puma’s closing price of EUR 21.63 in Frankfurt on January 26. Following the announcement, Puma’s stock surged nearly 17%.
Anta expressed its intention to bolster its global presence and brand awareness within the sports product market, aiming to strengthen its overall international competitiveness.
However, Puma’s performance has declined in recent years. Its net profit dropped 14% in 2023 and fell another 7.6% in 2024, according to financial reports. Last year’s sales are projected to have decreased by double digits, as indicated in the company’s third-quarter financial statement.
In China, Puma’s competitive edge has weakened, with local consumers becoming less inclined to purchase foreign brands indiscriminately, explained Zhao Chengfei, a sports retail chain owner with multiple large outlets. He noted it remains uncertain whether Anta will succeed in revitalizing other foreign brands as it has done before, when acquiring and invigorating brands like Arc’teryx, Salomon, and Fila after taking over Amer Sports in 2019.
Recently, Anta reported CNY 70 billion (roughly USD 10.08 billion) in operating revenue and a net profit of CNY 7.6 billion in the last quarter, both slightly higher than the previous year. Although its flagship brand, Anta, experienced a minor drop in retail sales, its premium brands Descente and Kolon Sport saw growth between 35% and 40% compared to the same period last year.
This suggests that while the core brand faced short-term setbacks, the strong performance of its diversified, high-end brands offered a buffer. Analysts also pointed out that Anta’s rapid expansion brings integration challenges, even as the company seeks new avenues for growth.
With numerous major sports events, including the World Cup, scheduled for this year, Puma’s influence in soccer is second only to Adidas. The acquisition has strengthened Anta’s position in one of the world’s largest sporting tournaments, according to industry insiders.
One analyst noted, “It remains quite challenging for Chinese sports companies to establish a foothold in the global soccer market relying solely on their own brands. Acquiring established international brands could be a strategic move.”
Despite recent setbacks, Puma remains the fourth-largest sports apparel company worldwide behind Nike, Adidas, and Lululemon. During a recent earnings call, Puma’s CEO emphasized the company’s focus on rebuilding its brand, concentrating resources on running, football, and training segments to aim for renewed growth by 2027 and position itself among the top three global sports brands.
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