Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers

German fashion brand set to be bought by Mike Ashley’s Frasers Group.

The retail business formerly known as Sports Direct, has made a takeover offer for the Hugo Boss for approximately £1.73 billion. Frasers already owns just over a quarter of Hugo Boss, having been gradually buying up shares since 2020.

This approach of growing a shareholding gradually before launching a full takeover is different from Frasers' more typical strategy of buying struggling retail brands that have collapsed into administration.

Frasers Group owns many well-known brands including House of Fraser, Jack Wills, Game, and Evans Cycles. Taking over Hugo Boss would give Frasers access to an established customer base and an instantly recognisable name. It would also remove a competitor from the luxury fashion market.

Hugo Boss is already well established, with strong brand recognition, loyal customers, and an existing supply chain, all of which Frasers would gain immediately.

As a public limited company (plc), Hugo Boss's shares are traded openly on the stock market. This structure is part of what has made the takeover possible. The more shares Frasers has bought, the more voting power it has gained, reducing the control of the original shareholders.