Shares of Hanesbrands (HBI) surged 6.80% in pre-market trading on Wednesday following reports that Canadian clothing manufacturer Gildan Activewear is nearing a deal to acquire the U.S. innerwear maker. The potential acquisition could value Hanesbrands at approximately $5 billion, including debt, according to sources familiar with the matter.

The news of the potential takeover has sparked investor interest in Hanesbrands, leading to the significant pre-market rally. This development comes as a positive surprise for Hanesbrands shareholders, as the company has been facing challenges in recent years due to changing consumer preferences and increased competition in the apparel industry.

While details of the potential deal remain limited, the acquisition by Gildan Activewear could create synergies in the North American apparel market. Both companies specialize in basics and activewear, which could lead to cost savings and improved market positioning. Investors will be closely watching for any official announcements or further details about the potential acquisition in the coming days.