According to German business magazine ManagerMagazine, Adidas CEO Kasper Rorsted plans to complete the sale of Reebok by March 2021. The report also said that Rosted hopes to get 2 billion euros (approximately RMB 15.8 billion) from selling Reebok.
There are currently two companies rumored to be interested in acquiring Reebok. One is VF Corporation, which owns well-known brands such as Timberland and The North Face, and the other is the Chinese sports brand Anta Group.
Why will Anta become the successor that people expect? This starts with Anta’s acquisition experience.
Business complementarity has become a trend
Expand overseas The market has become a rigid demand
When a company acquires other brands, it often focuses on whether it can complement its existing business. As a fitness brand, Reebok and Anta The existing categories are complementary, which can make Anta’s business more diversified.
At the same time, from the perspective of expanding overseas markets, Anta’s acquisition of Reebok is also possible. In the domestic sporting goods market, Anta ranks first, and globally, Anta ranks third. Anta still has a lot of room for improvement. In order to enter overseas markets faster and hit the highest peak, Anta regards overseas layout as the current focus of business development. Reebok has a good reputation and brand image in Europe and North America, which is very important for Anta to expand overseas markets and strengthen its business development. Brand internationalization can play a great role in promoting.
Previous successful acquisition cases have become a boost
Anta acquired FILA, which was on the verge of bankruptcy, and gradually developed it into Anta’s main source of revenue has become well-known in the industry and has become a typical case of successful acquisitions.
FILA was on the verge of bankruptcy and changed hands many times due to poor performance. It also lost nearly 40 million yuan in just two years due to poor management. After Anta acquired it, it adjusted the brand, changed its original strategy, targeted young people, and made every effort to create a fashionable sports series to bring it back to life. The great success achieved after the acquisition of FILA seems to make people think that Reebok’s mess is none other than Anta. What’s more worth talking about is Anta’s acquisition of Finnish brand Amer.
In March 2019, Anta joined an investor consortium composed of FountainVest Capital, Tencent and others to acquire Amer Sports Company for 37.1 billion yuan, intending to expand into the outdoor sporting goods market. On the evening of April 11, 2019, Ding Shizhong, Chairman of the Board of Directors of Anta Sports, posted in Moments: Another title, Chairman of the Board of Directors of Amer Group. By then, Anta Sports has completed the acquisition of Finnish brand Amer.
Yama Sports is a Finnish brand founded in Helsinki, Finland in 1950. It is one of the best sports equipment brands in the world. It owns a number of brands with high-end positioning. Arc’teryx, Salomon, and Wilson are all world-famous brands. After Anta Sports completed the acquisition, it also announced that Amer Sports has entered the era of Chinese investment.
Anta’s successful acquisition of Amer was precisely because it saw the benefits of corporate mergers and acquisitions. Corporate mergers and acquisitions refer to corporate mergers and acquisitions. Enterprises rapidly increase market share through continuous mergers and acquisitions, bring enemies under their banner, and reduce existing competitors. And through mergers and acquisitions, the company’s terminal resources can also be increased, thereby obtaining more in-store traffic; not only that, through mergers and acquisitions, product lines can be continuously increased, giving customers more choices.
Now Anta has firmly established itself as the number one domestic sports brand. The acquisition of Amer Sports under its umbrella also allows the Anta brand to be second only to Nike. , Adidas ranks among the top three in the world, rapidly accelerating Anta’s development in the international market. However, acquisitions are not the master key to expansion. There are complementarities between enterprises, and they may also be accompanied by mutual exclusivity, especially in cross-border acquisitions. During the merger and acquisition process, changes in the target enterprise’s value assessment, financing methods, payment methods, and financial structure during the integration phase will continue to affect the company’s financial operations. This is called corporate merger and acquisition financial risk.
Financial risks in corporate mergers and acquisitions have varying degrees of impact on companies at different stages. In the early and mid-term stages of M&A, companies evaluate the value of the target enterprise in accordance with common practice, and the authenticity of the assessment has a direct impact on the size of the financial risk in the early stage of M&A. Therefore, it is necessary to study the financial risks of corporate mergers and acquisitions.
Risk prevention in corporate mergers and acquisitions is a highly professional task that requires the guidance of professional institutions to make it smoother. It is precisely because Anta has made great efforts in corporate mergers and acquisitions that it acquired FILA and Asia. Muffin’s success story: If a company wants to expand its business and achieve the ultimate goal of mergers and acquisitions, it still needs to conduct mergers and acquisitions safely under the guidance of professional institutions. Jiangxi Xinzhe Law Firm provides professional corporate merger and acquisition consulting services to protect the development of enterprises. </p
