Nike has announced a multi-billion dollar investment in Adidas, as the global sports footwear giant tries to make its brand more relevant to consumers in emerging markets.
The $1 billion deal, announced Wednesday, is a joint venture between Nike and the Chinese conglomerate, Adidas.
It will invest in the Adidas-owned brand with a $1.3 billion investment over a five-year period, with the goal of making Adidas the “global leader in performance footwear.”
In a statement, Nike said the deal “will expand our global footprint and create a global footwear powerhouse that will lead the way in enhancing the competitiveness of the global footwear industry.”
The investment comes on the heels of Adidas announcing that it has completed a deal to buy its entire shoe supply chain, which includes about 30 percent of Adidas’s footwear supply chain in Asia, and a majority stake in Adidas-backed footwear companies in Africa.
The deal will give Nike a presence in all markets in which the company is operating.
Adidas has been struggling to make money in Asia since it sold its footwear business to Chinese retailer JD.
The footwear business, now known as Adidas Originals, was sold to China’s JD for $6.6 billion in 2016.
The Chinese company now owns more than 60 percent of the market for Adidas shoes.