Mergers, Acquisitions and Takeovers Case Study

Adidas-Reebok Merger: Sprinting behind Nike

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Abstract:

On Aug 3rd, 2005 Adidas, the German sports shoes and apparel company announced its decision to buy Reebok, an American rival for $3.8 billion and create a $10 billion footprint in global athletic footwear, apparel and hardware markets. The deal was expected to improve Adidas’s position in the North American market on the one hand and Reebok’s position in the European and Asian markets on the other. However, most industry watchers were skeptical about the deal being a challenge to Nike, the market leader.

This case examines the challenges that lay ahead for Adidas in terms of positioning of products, price and brand. Despite the synergies available as claimed in the deal the industry experts believed that the two big brands might duplicate efforts rather than complement each other.

Pedagogical Objectives:

• To discuss the challenges of Adidas in positioning after the merger with Reebok
• To discuss the synergy that would be developed after merger.

Keywords : Mergers,Acquisitions,Alliances Case Study;Adidas; Reebok; Nike; Merger; Sport Shoe; Footwear; Sports Apparel; Adidas-Salomon; Deal

Contents : 
Reebok International Ltd
Highlights of the Adidas-Reebok deal
Issues involved in the deal
How Adidas and Reebok stack up against rival Nike