Puma's Cross-Border Buyout: Strategic Opportunities for Asian Sportswear Giants

The global sportswear market is witnessing a seismic shift as Asian brands like Anta Sports, Li Ning, and Asics increasingly eye Western counterparts such as Puma for strategic acquisitions. With Puma's recent financial turnaround and its ambitious "nextlevel" efficiency program, the German brand has become a tantalizing target for Asian players seeking to expand their global footprint. This analysis delves into the strategic and financial rationale behind these potential bids, assessing whether the numbers and market dynamics align for a transformative deal.

Anta Sports: The Cash-Rich Challenger

Anta Sports, China's largest sportswear company, has emerged as the most credible suitor for Puma. In the first half of 2025, Anta reported a 14.3% year-on-year revenue increase to RMB 38.54 billion, with operating profit surging 17% to RMB 10.131 billion. Its robust cash reserves-RMB 55.58 billion in cash and equivalents-provide ample firepower for a cross-border acquisition. Anta's acquisition of JACK WOLFSKIN in 2025 further underscores its appetite for expanding its outdoor segment, a move that could complement Puma's existing product lines.

Strategically, Anta's multi-brand portfolio (including FILA and Kolon) aligns with Puma's goal to diversify beyond its core running and lifestyle categories. Anta's R&D investments-nearly RMB 1 billion in H1 2025 also position it to enhance Puma's innovation pipeline. However, Puma's EV/EBITDA of 14.4x and its recent 10.4% sales decline in Q3 2025 may test Anta's valuation discipline.

Li Ning: The Prudent Investor

Li Ning, while less aggressive than Anta, has leveraged its investment arm, LionRock Capital, to acquire European brands like Clarks and Haglöfs. LionRock's 2.5x MOIC return on Clarks and its 2023 acquisition of Haglöfs from Asics demonstrate its expertise in value creation. However, Li Ning's own financials tell a different story: its 2025 H1 net profit margin fell to 11.7% from 13.6% in 2024, and its 3.3% revenue growth (RMB14.8 billion) lags behind Anta's expansion.

Li Ning's "Single Brand, Multi-Categories" strategy focuses on niche markets like running and basketball, making a Puma acquisition less synergistic than for Anta. That said, LionRock's track record suggests Li Ning could still play a supporting role, either as a co-investor or through its joint ventures, such as the recent partnership with HongShan.

Asics: The Strategic Exit?

Asics, which previously owned Haglöfs, sold the brand to LionRock in 2023 to refocus on its core running and racing business. This move aligns with Asics' Mid-Term Plan 2026, which prioritizes profitability over geographic diversification. Financially, Asics reported a 19% revenue increase to ¥625 billion in the nine months ending September 2025, alongside a 39.4% surge in operating profit to ¥127.6 billion. Its conservative debt-to-equity ratio (0.53) and strong cash flows suggest it could afford a bid-but its strategic focus on Japan and Southeast Asia makes a Puma acquisition unlikely.

Puma's Financial Turnaround: A Buyable Bargain?

Puma's financials have shown marked improvement. In 2025, it achieved $10.2 billion in revenue and $1.1 billion in EBITDA, with a net profit of $326 million, compared to a $502 million loss in the prior year. Its market cap of $2.5–2.87 billion and EV/Revenue multiple of 0.6x suggest undervaluation relative to peers like Nike or Adidas. However, Puma's Q3 2025 sales decline and its plan to cut 900 white-collar jobs by 2026 highlight operational risks.

Strategic Rationale: Market Growth and Innovation

The global sportswear market is projected to grow from $425 billion in 2022 to $635 billion by 2028, driven by athleisure and sustainability trends. Anta, Li Ning, and Asics are all investing heavily in R&D and eco-friendly products. Puma's recent pivot to sustainability and its "nextlevel" efficiency program-aiming for an 8.5% EBIT margin by 2027-make it an attractive partner for Asian brands seeking to tap into Western markets while enhancing their innovation credentials.

Conclusion: A High-Stakes Game of Chess

While Anta appears best positioned to execute a Puma bid, the deal's success hinges on Puma's ability to deliver on its efficiency targets and the acquirer's capacity to integrate its operations. Li Ning and Asics could still play roles as co-investors or strategic partners, but their financial and strategic priorities may limit their involvement. For investors, the key question is whether Puma's turnaround justifies its current valuation-and whether Asian buyers can unlock hidden value in a brand with a storied legacy but a fragile balance sheet.