Shares of German sneaker maker Puma (PMMAF) are up 14% on reports it is being acquired by Anta Sports (ANPDY) of China.
A formal deal and dollar value have not been announced by either Puma or Anta Sports.
However, reports that an acquisition is in the final stages of negotiations has been enough to send Puma’s stock up sharply on Nov. 27.
News of a takeover comes as the German athletic brand continues to struggle with declining sales and rising inventory levels.
Earlier this month, shares of Puma hit their lowest level in more than 10 years, bringing year-to-date losses to more than 50%.
The company is reportedly considering a buyout, with Hong Kong-based Anta Sports emerging as the frontrunner to buy the German sportswear maker.
For Anta Sports, acquiring Puma is seen as providing it with entry to the Western market, say analysts.
Puma CEO Arthur Hoeld, who was appointed this past July, has been tasked with reviving the company’s brand and boosting sales.
Hoeld’s turnaround plan so far has involved cutting jobs, narrowing the number of products sold, and changing marketing.
Puma has said key challenges it faces are weak brand momentum, U.S. tariffs, and high inventory levels.
Puma’s biggest shareholder is currently Artemis, the holding company of France’s billionaire Pinault family, which holds a 29% stake in the company and would need to approve any sale.
