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Adidas Closes Reebok Takeover to Take on NikeReebok's shareholders and European anti-trust authorities approved the deal last week, clearing the last two hurdles for the biggest sector takeover for years.
Adidas, the world's second largest sports goods firm, said in a statement on Tuesday the deal would create group annual sales of about $11.8 billion, coming close to Nike's sales of $13.7 billion in its last fiscal year.
"By combining two of the most respected and well-known brands in the worldwide sporting goods industry, the new group will benefit from a more competitive platform," Herbert Hainer, chief executive of the new group, said in a statement.
Paul Fireman will step down as chief executive officer of Reebok and serve as Hainer's advisor, Adidas added. Reebok's management has supported the takeover.
The German firm, famous for its three-striped sportswear logo, reiterated that it expects the deal to boost earnings in the 2007 fiscal year and lead to cost savings of about $150 million by the third year after closing.
Adidas hopes the deal will complement its strength in classic sportswear such as soccer shoes and jerseys with Reebok's strong position in the United States, where Adidas has failed to seriously threaten Nike's position.
In addition, Reebok brings strength in the lifestyle fashion market and its women's aerobic business. It also off
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