A consortium of investors from Hong Kong and Abu Dhabi is launching a bid to buy Reebok from Adidas AG in a move that, if successful, would unwind an eight-year-old marriage of sneaker makers that has shown disappointing results.
Jynwel Capital, the investment arm of the billionaire Low family of Asia, and funds affiliated with the government of Abu Dhabi planned to send a letter to Adidas directors imminently, offering to buy its Reebok business for about €1.7 billion ($2.2 billion), people close to the matter said. They are expected to argue that Reebok would have a brighter future if it were managed independently, echoing a sentiment that has underpinned a recent wave of corporate breakups.
It isn’t clear how receptive Adidas might be to the bid and there is no assurance it would be successful.
Adidas bought Reebok in 2006 for roughly €3 billion ($3.8 billion) with the intention of creating a footwear and sporting-apparel company that would rival Nike Inc. and have more clout with retailers.