Anders Holch Povlsen, owner of Topshop, and Fraser CEO, Mike Ashley, have had disagreements in the past. A potential takeover battle is developing for the fast fashion retailer Asos as Anders Holch Povlsen, a Danish billionaire, has increased his stake in the company to over 28%. This makes him Asos's largest shareholder and edges him closer to the takeover threshold according to new filings.

City regulations state that any investor holding more than 30% in a business is required to make a formal takeover bid. This situation sets the stage for a possible faceoff with another retail magnate, Mike Ashley, the second-largest shareholder in Asos through his Frasers Group, which holds a 24% stake and has also been upping its investment in Asos.

Notably, Holch Povlsen and Ashley have clashed previously at Asos. In 2023, reports revealed that Frasers made an offer to invest more in Asos in exchange for closer collaboration between the two companies, which Asos declined in favor of a different investment opportunity supported by Holch Povlsen.

The tension between the two billionaires is not new. In late 2020, they disagreed over the closure of Jenners, a historic Scottish department store. Additionally, last year, Asos sold a majority stake in Topshop to Holch Povlsen for £135m, a move seen as a slight to Ashley.

Anders Holch Povlsen, a self-made retail mogul, transformed his family business, Bestseller, into a successful company owning popular brands like Jack & Jones and Vero Moda. His estimated worth is £6.7bn. On the other hand, Mike Ashley's Frasers Group has acquired several brands and stakes in various retailers like Boohoo and AO World, showcasing his reputation for successful deals.

The news of Holch Povlsen's increased stake in Asos caused the company's stock to rise by 13%. Asos remains down by around 40% since the end of January.