Mike Ashley's Frasers offers £1.73bn to buy all of Hugo Boss

Businessman Mike Ashley's Frasers has made a takeover offer for German fashion brand Hugo Boss.

The retail group already owns just over a quarter of Hugo Boss, having steadily built up the stake since 2020, but said on Wednesday it wanted to buy the rest of it for €1.98bn (£1.73bn).

Hugo Boss said it would "thoroughly examine the offer and issue a reasoned statement".

Frasers, formerly known as Sports Direct, owns House of Fraser, Game, Jack Wills, Evans Cycles and many other brands. It is also the largest shareholder in Boohoo but has had a frosty relationship with the firm.

Frasers has built a reputation for swooping in to buy retail brands which have fallen into administration, but its gradual increase in ownership of profit-making Hugo Boss over several years is a different approach.

Because it has grown its shareholding so much, Frasers is now close to the 30% ownership level that German law requires it to make an offer for the whole company.

The deal would value Hugo Boss at €38 a share, higher than the €36.5 it closed at on Wednesday.

Frasers said that it expected the takeover to be completed by the end of this year, providing it passes all the legal checks.