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Adidas, Reebok vie against Nike for China market
(Bloomberg)
Updated: 2005-08-09 10:31

Aug. 9 (Bloomberg) -- The proposed combination of Adidas- Salomon AG and Reebok International Ltd. will help the companies open more stores and compete against Nike Inc. for leadership in China, the world's fastest-growing athletic gear market.

``We are growing faster in China than Nike and together with Reebok we are bigger,'' Adidas Chief Executive Officer Herbert Hainer said yesterday in an interview in New York. ``We can offer our full organization in China to help Reebok build stores.''

Adidas, the No. 2 athletic-shoe and apparel maker, and larger rival Nike are opening locations in China ahead of the 2008 Olympic Games, which is expected to accelerate demand for sports gear. Adidas's 1,300 sales locations in China, compared with 2,000 for Nike, will benefit from Reebok's endorsement pact with Houston Rockets center Yao Ming of the National Basketball Association.

``Everybody's got their eye on the China prize,'' said Paul Spindler, who helps manage $2.5 billion at Pittsford, New York- based Clover Capital Management. Clover owned 388,669 Reebok shares as of June. ``Nike has a head start. Adidas would like to be larger as the China opportunity unfolds.''

Nike's estimates suggest it will maintain its lead in China after the merger. Nike said it has 30 percent of the Chinese athletic market, trailed by Adidas's 19 percent. The inclusion of Reebok will catapult Adidas's share to 27 percent, according to Beaverton, Oregon-based Nike.

Nike spokesman Alan Marks declined requests for executive interviews.
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