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Wednesday, August 3, 2005
Adidas, the second largest sports clothes manufacturer in the world, has announced it has struck a deal with the American company Reebok for EUR 3.1 billion. The deal has to be agreed by the Reebok shareholders.
Adidas is doing this to increase its share in the US market and to compete with Nike, the largest sports brand in the world. Even after the merger, Nike will still be larger than the combined companies.
Reebok's shares have risen by 16% to $51. Adidas is offering $59 a share.
Lifetime opportunity
Herbert Hainer, Adidas CEO, said "This is a once in a lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry". If the companies combine their sales will be a staggering EUR 9 billion a year.
Winning a bigger share of the North American market is important for Adidas because it accounts for about 50% of the global sporting good market.
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This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.
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Note that some listed sources or external links may no longer be available online due to age.
The text of this article has been released into the public domain. In the event that this is not legally possible, this article may be used for any purpose, without any condition, unless such conditions are required by law. This applies worldwide. Copyright terms on images, however, may vary, so please check individual image pages prior to duplication.
