Hanesbrands (HBI) stock surged 13.87% in a dramatic upswing during Tuesday's trading session, following reports that the company is nearing a deal to be acquired by Canadian apparel manufacturer Gildan Activewear.

According to the Financial Times, Gildan is close to finalizing a takeover that could value Hanesbrands at approximately $5 billion, including debt. This potential acquisition has sparked significant investor interest, driving the substantial increase in Hanesbrands' stock price.

Hanesbrands, known for its popular underwear and casual wear brands, has been facing challenges in recent years due to changing consumer preferences and increased competition. A merger with Gildan, a major player in the activewear and printwear markets, could potentially create a powerhouse in the global apparel industry. As of now, neither company has officially confirmed the deal, and investors are eagerly awaiting further details on this potentially transformative transaction.