Regulators Raise Concerns Over Bass Pro Shops, Cabela's Merger
December 30 2016 - 9:05AM
Dow Jones News
By Austen Hufford
Federal regulators raised questions over Bass Pro Shops' $4.5
billion deal to buy fellow outdoor-sports gear retailer Cabela's
Inc., sending shares of Cabela's lower.
In a regulatory filing Friday, Cabela's said the Federal Trade
Commission had requested additional information from both Cabela's
and Bass Pro Shops. And Capital One Financial Corp., which is also
buying some financial assets as part of the deal, also told
Cabela's that it expects a delay in the deal's final approval,
according to the filing.
Capital One said it still expects a banking regulator, the
Office of the Comptroller of the Currency, to eventually approve
the deal -- but not before October 3, 2017. That date is when
parties to the merger can walk away.
The companies have targeted the first half of 2017 for
completion of the merger. Cabela's said it still expects FTC
approval during the first half of 2017, and that it was exploring
alternative structures for the deal to allow for a closing before
next October.
The deal would create a national chain with more than 180
locations, roughly 40,000 workers and control of more than 20% of
the $50 billion U.S. hunting, camping, and fishing market, Stifel
analyst Jim Duffy has said.
Shares of Cabela's fell 7% in premarket trading.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
December 30, 2016 08:50 ET (13:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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