CANTON, Mass., Aug. 3 (UPI) -- Germany's Adidas-Salomon AG sporting goods company will pay $3.8 billion to buy U.S. rival Reebok International Ltd.
Observers attributed the move to Adidas' desire to compete more vigorously with Nike, the world's top sportswear marker, the Times of London reported Wednesday.
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Based on Tuesday's closing price of Reebok shares, Adidas is paying a 34 percent premium. That premium knocked down Adidas share price in mid-day trading Wednesday.
Sales of a combined Adidas-Reebok company would have estimated sales of about 81 percent of what Nike has.