Textile company Pallas Textiles is buying Pallas Originals for $12.4 billion
Pallas, a Spanish textiles maker that is based in Madrid, has been in talks with Spanish retail giant Aldi for a takeover of the French company, according to people familiar with the matter.
Pallas is one of the largest textiles manufacturers in Europe and the biggest textile producer in Brazil.
The Pallas deal will give Pallas the rights to develop and sell Pallas textile products across Europe, Latin America and the Middle East, these people said.
It will also create Pallas a global business, the people said, asking not to be identified discussing the matter publicly.
Aldi said in a statement that the two companies “have agreed on the strategic terms” and that they are working together “to ensure Pallas’ continued success.”
Pallas shares fell 1.6% to 1,073.72 euros on Tuesday.
In a statement, Aldi said it was “very happy” to have Pallas “in our portfolio,” adding that the agreement “ensures the continued success of Pallas.”
It added that Pallas was “the best-known Spanish textile brand” in Latin America, including in Argentina, Uruguay, Brazil and Peru.
Palla is one a number of Spanish textile companies that have been acquiring companies in the past few years, including Molloy and the Spanish textile giant Tocqueville.