🎉 We've launched our new mobile app! Learn about it here

Call Me… Maybe

12th_September_-_AmerAnya

Image source:

What's going on?

A group of Chinese investors swiped right on Finnish sporting goods company, Amer Sports – which owns Salomon, Wilson and Arc’teryx, among other brands – indicating their interest and valuing the company at over $5.3 billion.

What does this mean?

The courting consortium comprises a private equity firm and Amer’s Chinese rival, Anta Sports – which has had eyes on Amer for a while. Anta wants to expand overseas and buying big, reputable, international brands is a surefire way to go. According to reports, the Chinese group will make a formal offer in the coming weeks and wants to lock down a deal by the end of 2018.



If Anta succeeds in getting Amer, the combined force might be a formidable opponent for VF Corporation – American owner of Timberland, North Face and Vans – which Amer competes with in adventure clothes and footwear.

Why should I care?

The bigger picture: Shooting for the Olympics?

Along with skimaker, Salomon, Amer owns Atomic Skis, and China is hosting the Beijing Winter Olympics in 2022 – which will likely boost ski sales (both worldwide and in China). Plus, the 2020 Summer Olympics in Japan will show off other Amer brands – like tennis maverick, Wilson.



For markets: It’s all about China.

As Chinese consumers become wealthier, the number of hours they have for leisure each day is growing – and they’re spending more cash on sporting goods. The Chinese sportswear market is forecast to be worth over $700 billion in 2025 (more than tripling from 2017). And enthusiasm for sporting events is growing rapidly – there were more than 400 marathons held in China last year, up from a measly 22 in 2011 – and all these athletes will need gear. Furthermore, the Chinese government is concerned about growing levels of obesity and has a plan – “Healthy China 2030” – that champions health as a habit.

Originally posted as part of the Finimize daily email.

The top 2 financial news stories in 3 minutes. Join over 600,000 Finimizers

Read next

Serving Up Growth

Sign up to Finimize

Get the two most important global financial news stories each day. Sent at midnight UK time.

Get started with one email a day

The top financial news stories in 3 minutes.