Amidst FTC review, analysts say Bass Pro Shops $5.5 billion deal to acquire Cabela’s could be falling apart.
Reports surfaced midweek from The Motley Fool that the historic deal could be in jeopardy, as regulations from the Federal Trade Commission present significant hurdles for closing the deal, which was announced in October 0f 2016.
“The wheels look like they’re coming off the merger between Bass Pro Shops and Cabela’s,” writes the Fool’s Rich Duprey. “It appears the hurdles for successfully navigating the regulatory landscape are more hazardous than originally believed. Not only has the Federal Trade Commission sought more information about the transaction, delaying the potential closing deadline, but the regulatory request has jeopardized the sale of Cabela’s financial arm to Capital One.”
Read Duprey’s full story here.
Meanwhile, Bass Pro Shops cannot move forward with its purchase of Cabela’s until someone takes over Sidney’s in-house bank. Capital One reportedly failed to clear a hurdle from the U.S. Office of the Comptroller of the Currency before finalizing the deal. A 2016 report by Reuters stated that Citigroup, Bank of America, Capital One, Toronto Dominion Bank and Synchrony Financial were all attempting to secure the Cabela’s credit card business; however, it is unclear at this time whether any of those parties have renewed interest.
Cabela’s stock has dropped from $63.00 per share to $45.10 per share in the wake of speculation.