Puma stock surges after Anta Sports buys $1.8 billion amid turnaround efforts

shares Puma The German sportswear company, which soared on Tuesday after China’s Anta Sports announced it would buy a 29 percent stake from the French billionaire Pinault family, is trying to recover at a time when sales and brand momentum are struggling.

Anta will pay 1.5 billion euros ($1.78 billion), or 35 euros per share, to acquire a 29.06% stake in Puma and become the company’s largest shareholder. Anta also said it had no plans to make a takeover bid, which would be required under German securities laws with a 30% ownership.

Puma shares rose as much as 20% in early trading but later pared gains. The stock was last traded at 23 euros, up 6.3%.

The deal, which is expected to be completed by the end of the year and is subject to regulatory and shareholder approval, comes as Puma struggles to revive sales and complete a business overhaul after former Adidas executive Arthur Hoeld took the reins last year.

It could also help Anta increase its global footprint.

Anta has a track record of expanding its global footprint by acquiring and innovating Western sports and lifestyle brands. In 2019, he led a consortium to acquire Amer Sports, whose portfolio includes Wilson, Arc’teryx, Salomon and Atomic. Metzler analyst Felix Dennl said the Puma deal further supports Anta’s global expansion and multi-brand growth strategy, adding that the market will view the investment as a boost to Puma’s ongoing recovery efforts.

Hoeld’s turnaround plan so far has included cutting jobs, narrowing the firm’s product line and improving marketing operations, with the company calling 2025 a “reset year.”

Melinda Hu, Bernstein’s China consumer analyst, said the €1.5 billion valuation looked “reasonable” compared to peers in the sportswear sector, especially given Puma’s current “loss-making situation.”

“Anta is essentially acquiring a brand with a deep heritage and historically strong products at a distressed valuation,” Hu added.

The deal builds on Anta’s efforts to expand its presence outside China, where it faces growing competition. Nike And adidas. Hu said Anta could leverage Puma’s legacy to diversify into a new product category and into markets where it has not established a strong foothold.

“Puma fills the mass-market athletic footwear and sports lifestyle gap between Nike, Adidas and affordable brands,” said Julia Zhu, partner and head of consumer retail at consulting firm CIC.

Puma is strong in Europe and Latin America but weak in China and North America, creating “minimum overlap and maximum synergy potential,” Zhu added.

Puma’s shares came under heavy pressure last year, falling nearly 50% as U.S. President Donald Trump’s tariff policy rattled investors and retailers grew nervous over concerns that tariffs could hit consumer demand, according to LSEG data. Puma shares are down more than 3% so far this year in trading on Tuesday.

“This is not a takeover [as] Hu noted that Anta does not have full control and Puma remains an independent company with its own management. Reuters reported on Tuesday that Anta’s management team said they would speak to their counterparts at Puma “first thing this morning.”

Recovery in global mergers and acquisitions

The Anta-Puma deal has also caused global businesses to increasingly reassess their risks and returns in the face of technology disruptions, increasing geopolitical uncertainty and industry consolidation.

“Companies will make bolder moves to double down on parts of their global footprint and minimize exposure to less advantageous parts,” according to a survey released Tuesday by Bain & Company. More than half of the companies surveyed are preparing to sell assets in the coming years, driven by a desire to sharpen business focus, free up cash and benefit from higher valuations in today’s market, Bain said.

According to Bain, global deal-making activity has revived since last year, with deal value rising 40% to $4.9 trillion; this was the second highest deal value on record.

The consultancy expects global deal-making momentum to continue into 2026, citing easing geopolitical tensions and deepening capital pools as private equity and venture capital firms seek to break free from the growing asset backlog.

Companies, meanwhile, “must urgently reinvent themselves to get ahead of the massive forces of technology disruption, the post-global economy and shifting profit pools,” said Suzanne Kumar, vice president of Bain’s global M&A and divestiture practice.