Adidas, the number two name in the sporting goods industry behind Nike, has announced its intention to buy U.S. rival Reebok in a 3.1 billion euro ($3.8 billion) deal to expand its reach in Nike's home market, according to Reuters.
Reebook shareholders and the antitrust authorities have to approve the acquisition.

The German company, which described the deal as friendly takeover, said on Wednesday it was buying the outstanding shares of Reebok for $59 per share in cash, a 34 percent premium to Reebok's closing share price on Tuesday.

Adidas is expected to double its North American sales and to strengthen its position in Europe and Asia, focusing on popular sports in those areas.

Adidas Chief Financial Officer Robin Stalker told analysts on a conference call he sees "the synergies very quickly outweighing the costs".

"Together, we will expand our geographic reach, particularly in North America, and create a footwear, hardware offering that addresses a broader spectrum of consumers and demographics", Adidas Chief Executive Herbert Hainer said in statement.