Frankfurt, August 3:

Adidas-Salomon AG said today it will buy shoemaker Reebok International Ltd for $3.8 billion, giving the company about 20 per cent of US market and the potential to better challenge leader Nike Inc on its home turf.

Under the terms of the deal, Adidas will pay $59 per share for all of Reebok’s outstanding stock, a premium of 34 per cent on yesterday’s closing price, said Adidas Chairman and CEO Herbert Hainer, “This is a once-in-a-lifetime opportunity to combine two of the most respected and well-known companies in the worldwide sporting goods industry.” Reebok’s board has signaled its approval of the offer price and approval by the company’s shareholders appeared likely, he said. The deal brings together two impressive stables of athletes and entertainment endorsers. English soccer star David Beckham and rap artist Missy Elliott are under contract to Adidas. It gives Adidas, which has outfitted soccer stars for years, access to Reebok’s licences to clothe players.