(AOF) – Adidas (-3.29% to 217.50 euros) shows the second biggest drop in the Dax index. The German sports equipment manufacturer, already in the red during the last two sessions in Frankfurt, announced on Monday that it was carrying out a “thorough investigation” concerning a case of alleged corruption in China. This is estimated at several million euros and involves local employees of the group. Sales of the three-stripe brand took off again last year in the Middle Kingdom, showing growth of 8% and representing 15% of the group’s total global sales.
Adidas indicates that it received “an anonymous letter on June 7 indicating potential compliance violations in China,” a spokesperson for the German firm told AFP.
The group, which has been established in China since 1997 and which today has 14 factories, says it takes allegations of possible compliance violations “very seriously”.
According to The Financial Times, which first revealed the affair, several Chinese employees, including an executive in the company’s marketing budget department, are suspected of having received large bribes.
An Adidas China manager is notably accused of having received “millions in cash from suppliers, as well as property, including real estate.”
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