👜 Asos rejects Shein’s higher offer
On September 9, 2024, Asos surprised many by turning down a £215.5M offer from Shein and Authentic Brands Group (ABG) for Topshop and Topman. Instead, Asos chose a smaller deal of £135M with Heartland, a company owned by Anders Povlsen's family. Despite the higher bid, Asos believed this decision served its long-term interests better. The deal values Topshop and Topman at £180M.
💼 Why Asos chose Heartland
Asos’s decision to go with Heartland was rooted in strategic planning. With this deal, Asos will still maintain design and distribution rights for Topshop and Topman, while receiving royalties. CEO José Antonio Ramos Calamonte said the move would help the company offer customers the best products while aiming for sustainable and profitable growth. The decision seemed to prioritize future revenue over immediate gains.
💻 Focus on online growth
Asos plans to relaunch Topshop.com as part of its strategy to focus on online growth. While the relaunch will allow Asos to continue marketing and selling the Topshop brand online, there are no current plans to open physical stores. Ramos Calamonte mentioned, “We will consider it for sure but we have no specific agreement to open a certain number,” indicating a possible future expansion.
📈 Boosting long-term profitability
While Shein’s offer was tempting, Asos felt the Heartland deal had more long-term potential. Ramos Calamonte emphasized that the partnership, along with refinancing efforts, would help Asos speed up its growth strategy. “The joint venture and the launch of the refinancing will accelerate our strategy,” said Calamonte, pointing to sustainable and profitable growth as the ultimate goal.
Was Asos right to reject Shein’s larger offer?
