According to a report published by the Chinese sportswear company Anta, it has signed an acquisition agreement with Belle International, one of the largest retailers of sportswear in China.
Under the agreement, Anta's wholly-owned subsidiary Motive Force will acquire a 85% stake in Belle International's Full Prospect, the owner of Fila trademarks in Greater China. At the same time, Motive Force will buy a 100% stake in FILA Marketing from Lead Chance, a wholly-owned subsidiary of Belle International. The two acquisitions will cost Motive Force CNY357.7 and HKD50 million, respectively.
Belle said it the reason for selling the business is because of a lack of experience in developing an international sports brand in China and the current weak economic conditions. Full Prospect made net losses of CNY5.53 million in 2007 and the losses further expanded to CNY32.18 in 2008; while Fila Marketing's corresponding losses were HKD5.43 million and HKD6.996 million.
The deal is currently waiting for the approval of the Anti-Monopoly Bureau and is expected to be completed on September 30, 2009.