Hanesbrands (HBI) stock is experiencing a significant pre-market surge, soaring 17.81% following reports that Canadian apparel manufacturer Gildan Activewear is nearing a deal to acquire the company. This dramatic upswing comes as investors react to the potential game-changing acquisition in the apparel industry.

According to sources cited by the Financial Times, Gildan is close to finalizing a takeover that could value Hanesbrands at approximately $5 billion, including debt. The talks are reportedly at an advanced stage, with a deal potentially being agreed upon by the end of the week. However, it's important to note that neither company has officially confirmed the acquisition, and there's still a possibility that the deal may not be finalized.

This potential merger has captured significant investor attention, as it could create a powerhouse in the global apparel industry. Hanesbrands, known for its popular underwear and casual wear brands, has faced challenges in recent years due to changing consumer preferences and increased competition. A combination with Gildan, a major player in the activewear and printwear markets, could provide Hanesbrands with new growth opportunities and synergies. As the market awaits further details on this potentially transformative transaction, the pre-market surge in Hanesbrands' stock price reflects the optimism surrounding the deal's prospects.