ANTA's third wave of mergers and acquisitions this year is once again in the spotlight

After a four-year hiatus, rumors of Anta acquiring Reebok have resurfaced.

Recently, market news indicated that Anta Group is close to reaching an agreement with the American brand management company Authentic Brands Group (ABG) to complete the acquisition of the Reebok brand and finalize the capital contribution.

This news quickly gained traction on social media, receiving likes from Anta Group executives.

However, Anta Group publicly stated that it "does not comment on market rumors."

Just two days after the related news began to circulate, ABG came forward to deny it.

Steve Robaire, Executive Vice President of Reebok and its other brand Champion, clearly stated: "ABG has no intention of selling Reebok, now or in the future."

Robaire further emphasized: "In our 16 years of brand ownership history, we have never sold any brand. We will continue to fully commit to the development of this brand and its success globally."

ABG's connection with Reebok began in 2021.

At that time, amid competition from multiple parties including Anta, ABG acquired Reebok from Adidas for approximately $2.5 billion, marking the largest acquisition in ABG's history.

ABG employs a light-asset brand management business model and rarely operates brands independently.

After completing the acquisition, ABG divided the operational rights of Reebok's global markets among different partners, with the partner covering the Greater China market, including Hong Kong and Macau, being the Hong Kong-based Li & Fung Group.

Coincidentally, Li & Fung Group was also the Chinese agent for Anta's recently acquired German outdoor brand Jack Wolfskin, with their collaboration ending in 2018.

However, Reebok's development in the Chinese market has not been smooth.

From 2022 to the end of 2024, the number of Reebok stores, including those in mainland China and Hong Kong, was 15, 30, and 36, respectively, indicating a slowdown in store expansion, with new stores primarily concentrated in outlet channels.

In 2024, Reebok's business revenue in China decreased by 19% year-on-year, resulting in a loss, with online sales plummeting nearly half compared to 2021, totaling only 160 million yuan.

Li & Fung Group Chairman Wang Jianzhong even mentioned in the 2024 financial report that they are considering adjustments to Reebok's business strategy, which may include changing the existing franchise arrangements or shortening the franchise term.

In the global market, Reebok's market share in 2024 is less than 1.5%. The market is not optimistic about ABG's $10 billion sales target set for 2027.

Nevertheless, Reebok still holds value for Anta.

Independent analyst Tang Xiaotang from No Agency pointed out that Anta's brand matrix still lacks a professional sports brand focused on the mid-to-high-end market.

Additionally, as a century-old brand once on par with Nike and Adidas, Reebok not only possesses channel advantages rooted in mature markets in Europe and America but also has proven brand assets and professional reputation.

As early as four years ago, Reebok had over 200 stores in core U.S. cities like New York, Los Angeles, and Chicago; its European network is similarly extensive, with over 300 stores in major markets such as London, Paris, and Berlin In recent years, Reebok has expanded its global channels with the help of ABG, establishing or deepening partnerships with several retailers, including Foot Locker in the United States, the global multi-channel JD Group, and India's ABFRL.

Market analysis indicates that Anta's acquisition logic has undergone a significant shift in recent years: from niche sub-brands such as Arc'teryx, Descente, and MAIA ACTIVE to global mass-market brands.

Both the already acquired Jack Wolfskin and the rumored potential target Reebok are expected to help Anta achieve its goal of "borrowing a boat to go to sea."

However, the advancement of this transaction will face considerable challenges in capital organization.

Tang Xiaotang told Xinfeng that although Adidas sold Reebok to ABG for $2.5 billion in 2021, the brand's valuation has significantly shrunk from its acquisition price of about $3.8 billion in 2006. However, if Anta intends to acquire it now, the expected transaction amount will not be less than $2 billion.

As of the end of 2024, Anta's net cash level is approximately RMB 31.4 billion.

Since the beginning of this year, Anta has announced two acquisitions: a strategic investment of 50 billion won (approximately RMB 264 million) in the South Korean fashion e-commerce platform MUSINSA, and the inclusion of the German outdoor brand Jack Wolfskin for $290 million (approximately RMB 2.08 billion).

In Tang Xiaotang's view, Anta was at the peak of its stock price and market confidence in 2021 but still failed to complete the acquisition of Reebok through external financing. Now, whether through debt financing or forming a consortium as it did when acquiring Amer Sports, the difficulty will be higher than during the last bidding.

"The progress of the 10 billion buyback plan announced by the company last August has been quite limited. If it takes on debt for acquisitions at this time, it may impact market confidence," Tang Xiaotang said