Though PVH owns the Calvin Klein brand, underwear and jeans are controlled by Warnaco.

Warnaco's Calvin Klein businesses will be moved to PVH and run by Tom Murry, chief executive of Calvin Klein following the cash and stock deal.

"Having direct global control of the two largest apparel categories for Calvin Klein -- jeans and underwear -- will allow us to unlock additional growth potential of this powerful designer brand," PVH Chief Executive Emanuel Chirico said in a statement on Wednesday.

PVH, which also owns the Tommy Hilfiger brand, is offering Warnaco shareholders $51.75 in cash and 0.1822 of a share of PVH common stock for each Warnaco share.

Based on PVH's last closing stock price, the per share value of the deal is $68.43, a 34 percent premium over the last closing price of Warnaco common stock.

PVH said it has commitments for $4.33 billion in financing from Barclays, BofA Merrill Lynch and Citigroup Global Markets Inc.

(Reporting by Sakthi Prasad in Bangalore; Editing by Erica Billingham)

• A Permanent Economic Emergency