Bonds could soon be under foreign ownership.
The Foreign Investment Review Board (FIRB) has confirmed the federal government has no objections to a $1.1 billion takeover bid of parent company, Pacific Brands.
American giant Hanesbrands has proposed a 100% acquisition of the group via a Scheme of Arrangement.
Pacific Brands chairman Peter Bush said the offer has unanimous support.
"HanesBrands has recognised the work done over the past two years that has seen the Board and management team under CEO David Bortolussi’s leadership reshape and simplify the business to focus on our highest quality brands and improve operational performance .
"That work has resulted in a significant re-rating of the company and its share price .
"Shareholders now have an opportunity to realise a further increase in value through a compelling proposal."
He said the offer presents a premium to current trading multiples and compares favourably to prior transactions in the global underwear and basic apparel sector.
"The HanesBrands proposal represents an opportunity for Pacific Brands shareholders to realise attractive value for their shares and to de-risk future growth opportunities available to the business.
"HanesBrands can provide Pacific Brands with additional scale, sourcing benefits, financial flexibility and the opportunity to accelerate the growth of iconic brands such as Bonds and Sheridan.
"We expect the transaction will have limited impact on Pacific Brands continuing operations and employees."