Puma stock surges after Anta Sports buys $1.8 billion

Shares of Puma surged Tuesday after China’s Anta Sports activities mentioned it will purchase a 29% stake from the French billionaire Pinault household, because the German sportswear firm works to show itself round amid struggling gross sales and model momentum.

Anta can pay 1.5 billion euros ($1.78 billion), or 35 euros per share in money, to take a 29.06% stake in Puma. The deal would make Anta Puma’s largest shareholder, nevertheless, Anta mentioned it has “no present plans” to make a takeover supply, which might be required beneath German securities legal guidelines at 30% possession.

Puma shares rose as a lot as 20% in early buying and selling however later pared features. The inventory was final seen buying and selling 9.4% increased at 23.7 euros, however remains to be buying and selling near its 10-year low.

The deal, which is predicted to shut by the tip of the yr and topic to regulatory approvals, comes as Puma has struggled to revive gross sales and comply with by means of on a enterprise overhaul after Arthur Hoeld, a former Adidas govt, took the reins final yr.

It may additionally assist Hong Kong-listed Anta improve its international footprint.

Anta has a monitor report of increasing international footprints by buying and revamping Western sports activities and life-style manufacturers. In 2019, it led a consortium to amass Amer Sports activities, whose portfolio options Wilson, Arc’teryx, Salomon and Atomic. The Puma deal additional underpins Anta’s international enlargement and multi-brand development technique, mentioned Metzler analyst Felix Dennl, including that the market will seemingly view the funding as a lift to Puma’s ongoing turnaround efforts.

Hoeld’s turnaround plan has to date concerned reducing jobs, narrowing the agency’s product vary, and enhancing advertising operations, and the corporate referred to 2025 as a “yr of reset.”

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

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

The deal builds on Anta’s efforts to increase its foothold outdoors 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.

“Puma fills the mass-market athletic footwear and sports activities life-style hole — a section positioned between Nike, Adidas and funds manufacturers,” mentioned Julia Zhu, associate and head of client 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.

Puma’s shares got here beneath heavy stress final yr, falling almost 50%, based on LSEG information, as U.S. President Donald Trump’s tariff coverage rattled traders and retailers grew nervous that tariffs may hit client demand. Coming into Tuesday buying and selling, Puma shares had fallen over 3% to date this yr.

“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 crew mentioned they’d communicate to counterparts at Puma “very first thing this morning.”

The deal may increase questions for competitor Adidas, significantly in European and Asian markets, as many traders view Anta as a robust operator that might improve aggressive stress, famous UBS analysts. Adidas shares have been down 0.7% in mid-morning buying and selling.

Kering shares final traded flat, following some features in early morning buying and selling.

International M&A rebound

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

“Corporations will make bolder strikes to double down on some components of their international footprint and decrease publicity to much less favorable components,” based on a survey by Bain & Firm launched Tuesday. Greater than half of surveyed corporations have been getting ready belongings on the market within the coming years, Bain mentioned, pushed by the need to sharpen enterprise focus, liberate money, and capitalize on increased valuations in at this time’s market.

International 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 report, based on Bain.

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

In the meantime, corporations “urgently must reinvent themselves to get out forward of the large forces of expertise disruption, a post-globalization financial system, and shifting revenue swimming pools,” mentioned Suzanne Kumar, govt vice chairman of Bain’s international M&A and Divestitures observe.