Australian government approves Pacific Brands deal
The proposed acquisition of Pacific Brands, which owns Sheridan linen and Berlei underwear, has cleared a major hurdle, receiving the approval of the Foreign Investment Review Board (FIRB).
US apparel firm HanesBrands launched a $1.1 billion takeover bid for Pacific Brands in late April, an offer that has been endorsed by the latter firm’s board.
The FIRB informed Pacific Brands that the Australian government has no objections to the takeover.
The definitive purchase agreement has been unanimously approved by both companies' board of directors. The deal, which is subject to Pacific Brands shareholder approval and other customary closing conditions, is expected to close in the third quarter of 2016.
The acquisition is HanesBrands' sixth in the past three years. It adds Australia and New Zealand to the list of countries where the Hanes holds top market share position for underwear, intimate apparel or hosiery.
Other markets include the US, Canada, Mexico, Brazil, France, Germany, Italy, Spain and South Africa.
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