"Nike" buys "Adidas"

22.03.2007
The largest manufacturer of the sports goods "Nike" examines an opportunity of purchase of the competing company - German "Adidas". Hearsays about the probable transaction have lifted cost of "Adidas" stocks on 3,4 %. Participants of the market consider that purchase will not take place: it’s unprofitable for "Nike" to buy the German manufacturer.

As tells the Russian edition "Sight"(Âçãëÿä), hearsays about probable future absorption of "Adidas" by the company "Nike" have drastic risen the price of the German manufacturer’s stocks. Experts are convinced, that the information about the transaction is groundless, though they don’t exclude, that such script is possible. “If you take a look at financial parameters of "Nike" you’ll understand, that the company is able to buy "Adidas"”, - considers analyst of LBBW Tim Burkhard. - But I doubt, that "Nike" is really interested in purchasing the "Adidas".

In expert’s opinion, purchase of "Adidas" “will become a kind of nightmare for "Nike"”. Besides such hearsays appears constantly in the market and it is difficult to make comments on them before the official application of the companies. “At first "Nike" buys "Puma", then - "Adidas"”, - notices one of experts. Representatives of the companies don’t make any comments about possibility of such transaction.

The newspaper marks, that now "Adidas" succeeds. The last year the company has shown record figures on sales: they have grown up on 52 % and have reached volume in 10,08 billions euro. The volume of dividends which are paid by the company has grown on 29 %. The reason of success is the world championship on the football, taking place in Germany. Besides in 2006 the company has bought American competitor - the sports manufacturer "Reebok".

Experts from "Adidas" predict, that in 2007 profit will grow up on 15 %, and growth of sales will make about 5 %. Such low forecast is connected with that fact that in the present year is not expected any big sports events and, as a result - any agiotage demand on sport goods, like in the summer of 2006.

In 2006 the profit of "Nike" was rose up to $15 billions. The net profit of the company in the second quarter of 2006-2007 has grown almost on 8 % due to tax privileges and high sales of production of other brands, in particular footwear "Converse". The proceeds have increased for 10 % up to 3,82 billions. In four years "Nike" expects to reduce their sales volume up to $23 billions. To solve this task by 2011 year, the company is going to open in nearest 3 years 100 additional shops worldwide.

Source: news.liga.net