Two of Australia's most-iconic surfwear labels could become one as Quiksilver made a bid to take over Billabong International which values the company at around $200 Million.

Billabong's shares shot up 23 percent on news of the offer.  The offer is subject to a number of conditions including unanimous approval by Billabong's board, as well as shareholder and court approvals.

US-based hedge fund Oaktree Capital Management controls more than 90 percent Quiksilver's shares, and owns a 19 percent stake in Billabong.  Rumors of merging the two brands go back for at least a couple of years, and the Australian Financial Review reports that Oaktree had been pursuing such a goal as part of a long-term plan for gaining a larger share of the $19 Billion global action sports market.

Quiksilver was founded in Victoria's Torquay in 1969 by Alan Green and John Law, but later taken to America where it was listed in 1986.  Billabong has been ailing for a while, and a turnaround program instituted four years ago is making slower progress than expected.