Anta Sports Makes Bid for Pinault Family's 29% Puma Stake Amid German Brand's Turnaround Efforts

China's Anta Sports Products has emerged as a potential buyer for the Pinault family's significant stake in struggling German sportswear brand Puma, marking another potential international acquisition by the Hong Kong-listed company.

Acquisition Details and Current Status

Anta Sports made an offer to acquire the 29% Puma stake held by France's Pinault family several weeks ago, according to three sources with knowledge of the discussions. The Chinese sportswear giant has already secured financing for the potential acquisition, demonstrating serious intent behind the bid.

However, the situation has reportedly stalled, with the Pinault family's investment vehicle Artemis expecting any offer for the Puma stake to exceed €40.00 per share. This valuation expectation appears to be a key sticking point in the negotiations.

Market Response and Puma's Financial Position

Puma shares responded positively to news of the potential acquisition, rising as much as 9% to reach €24.60 - their highest level since May. Despite this surge, the company's market capitalisation of €3.30 billion at Wednesday's close remains approximately 50% below the same date last year.

The significant decline in Puma's valuation reflects the brand's ongoing challenges, including steep sales declines as consumers have increasingly opted for competitors such as Adidas, On, and Hoka.

Puma's Turnaround Strategy

Puma's new CEO Arthur Hoeld outlined his turnaround strategy in October, following disappointing performance from recent product launches. Sneaker releases like the Speedcat failed to generate the anticipated market excitement, contributing to the company's sales decline.

The German sportswear brand faces intense competition in a challenging market environment, with rivals successfully capturing market share through innovative products and marketing strategies.

Anta's Acquisition Track Record

Anta Sports has established a strong track record of acquiring and revamping Western sports and lifestyle brands. Most notably, the company led a consortium in 2019 to acquire Amer Sports, which owns several prominent brands including racquet maker Wilson and mountain sports specialist Salomon.

This experience in international acquisitions and brand management could potentially benefit Puma's turnaround efforts, according to industry analysts.

Strategic Implications

RBC analysts view the potential disposal of Artemis' stake as "incrementally positive for the PUMA equity story," noting that new ownership could support brand investments, offer fresh perspectives, and bolster the early-stage turnaround strategy under CEO Hoeld.

The Pinault family acquired their Puma stake from Kering in 2018 when the luxury conglomerate transformed into a pure luxury player. A senior source close to Artemis indicated in September that the family would not sell at then-current market valuations, describing the stake as "non-strategic." Since then, Puma shares have risen 15%.

Artemis, which controls Kering as well as auction house Christie's and Hollywood talent agency CAA, has faced investor scrutiny due to debt accumulated during diversification efforts away from Gucci amid declining luxury sales.