Rumors are swirling that Adidas AG might be ready to sell Reebok.
Based on early reports from the Wall Street Journal, Hong Kong-based Jynwel Capital, with further investments from the government of Abu Dhabi, have made an offer to purchase the sneaker brand. Adidas shares spiked on the news Monday, closing up 5 percent at €56.75.
It would be the end of a rocky relationship for the two athletic companies. Adidas purchased Reebok in 2006 for $3.8 billion. Since the purchase, Adidas has struggled against rival Nike in the U.S., which has increasingly gained in the athletic market. In recent years, Adidas has tried to reposition Reebok as a performance athletic brand, but nevertheless the label is still looking for its foothold.
“The biggest pro here is that [Adidas and Reebok] could focus on the brands themselves,” said Paul Swinand, analyst at Morningstar. “They could search for unique branding and innovation and different products for sporting segments, and not [keep] trying to be things that don’t have to do with sporting goods.”
The news also comes on the heels of speculation last week that Adidas may have a buyer for Rockport. The firm began shopping the label around in May.
Adidas did not answer requests for comment.