Sneakerheads from all over the world, pay attention! German sports and lifestyle giant Adidas is about to sell the fading brand Reebok after a failed resuscitation attempt.
Adidas would like to close the entire sale by the end of the first quarter of 2021, next year in March. The sale has been going on for a long time and the current situation is pushing the price lower.
While at the beginning of the year Adidas CEO Kasper Rorsted hoped that the company would say goodbye to Reebok for two billion euros, now he has to accept a lower amount. However, this does not reflect disinterest – the purchase of Reebok, a brand whose history dates back to the end of the 19th century, attracts other major players in the sports range market.
For example, VF Corporation, which owns brandies such as Timberland and North Face, or the Chinese Anta International Group Holdings, are in the redemption game.
For Adidas itself, however, the entire transaction will be loss-making. The Germans bought Reebok in 2006 for $ 3.6 billion, a good two billion more than they will sell for. The main goal at the time was to cover the market and compete with its nemesis Nike, which is the leader of the American market.
A light patch for a loss-making acquisition may be the fact that shortly after the publication of speculations about the intended sale, Adidas shares jumped by 3.2%.
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