German Adidas buys American Reebok
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.
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.
When, or if, the bid does go through Adidas will own many well known brands, most noticeably Adidas and Reebok but also Taylormade, Rockport, Greg Norman Collection, Maxfli, CCM, Jofa and Koho.
Adidas sales up
Earlier this years Adidas profits rose 39%, to EUR 94 million.
- "Adidas agrees to buy rival Reebok" — , August 3, 2005
- "Íþróttavöruframleiðandinn Adidas kaupir skóframleiðandann Reebok" — , August 3, 2005
| 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.
Please note that this only applies to Wikinews content created prior to September 25, 2005. All content created after that date is released under a Creative Commons license which is mentioned at the bottom of each article. This is currently the Creative Commons Attribution 2.5 License.