New regulatory hurdles may postpone the deal.
The Federal Trade Commission (FTC) isn’t taking things lightly on the Bass Pro/Cabela’s deal. Bass Pro Shops announced their intent to buy their Nebraska-based competitor, Cabela’s, last year. However, in the latest statement issued by Cabela’s, the FTC is requiring additional information on the deal.
Before approving the merger, the FTC is requiring some additional information from the two stores, as well as additional information from Capital One Financial Corp, which is also purchasing some of the Cabela’s assets.
It is expected that final approval of both deals will be delayed. Bass Pro and Cabela’s still believe their deal will be solidified in the first half of 2017. Either party can walk away from the deal as of October 3, 2017 if approval is not finalized by that date.
Cabela’s shares dropped 7% in pre-market trading due to the news, according to a Fox Business report.
The merger, if approved, would create a new national chain with nearly 200 store locations. The newly created outdoor mega store brand would employ roughly 40,000 people. Additionally, it would control more than 20% of the $50 billion hunting, camping, and fishing market in the U.S.