US retail giant Dick’s Sporting Goods is on the verge of acquiring rival Foot Locker in a deal worth around US$2.3 billion (A$3.5 billion), according to The Wall Street Journal.

News of the potential deal sent Foot Locker shares surging more than 60% in after-hours trading.

The takeover is expected to be finalised as early as Thursday, barring any last-minute delays.

The two parties are in advanced discussions for a buyout priced at US$24 (A$36) per share, representing a massive 86% premium on Foot Locker’s most recent closing price of US$12.87.

Sneaker store Foot Locker operates roughly 2,400 stores across 26 countries, including 85 stores across Australia.

The acquisition would be Dick’s largest to date, significantly expanding the Pittsburgh-based company’s international footprint.

Foot Locker’s stock had been under pressure throughout 2025, sliding nearly 40% year-to-date.

The company has been grappling with weaker sales forecasts, shifting strategies from brand partner Nike, and market turbulence stemming from US tariff threats. Although many of those tariffs have since been paused, the earlier uncertainty rattled investor confidence.

Both companies are led by female CEOs – Mary Dillon at Foot Locker, who previously led Ulta Beauty, and Lauren Hobart at Dick’s, who has been focused on experiential megastore formats like the House of Sport.

The acquisition follows 3G Capital’s US$9.4 billion purchase of Skechers earlier this month.