The proposed US takeover of Pacific Brands has cleared another obstacle, receiving approval of the Foreign Investment Review Board.
US apparel giant HanesBrands has launched a $1.1 billion takeover bid for Pacific Brands, which also owns Sheridan linen and Berlei underwear, an offer that has been endorsed by the target’s board.
Pacific Brands said on Friday the FIRB has informed the group that the Australian government has no objections to the takeover.
If successful, the acquisition would be Hanes’ sixth in the past three years and would add Australia and New Zealand to the list of countries where the company holds top market share position for underwear, intimate apparel or hosiery. The countries include the United States, Canada, Mexico, Brazil, France, Germany, Italy, Spain, and South Africa.
The definitive purchase agreement has been unanimously approved by the boards of directors of both companies. The acquisition, which is subject to Pacific Brands shareholder approval and other customary closing conditions, is expected to close in the third quarter of 2016.
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