FTC given more time on Bass Pro, Cabela’s deal

Sidney, Nebraska-based Cabela’s Inc. (NYSE: CAB) yesterday announced the Federal Trade Commission was granted more time to examine its proposed sale to Springfield’s Bass Pro Shops.

Days ahead of a Cabela’s shareholder vote on the transaction, the FTC was given until July 5 to review the $5 billion deal and address questions its commissioners might have. The companies voluntarily agreed to extend the review period at the request of the FTC, according to a U.S. Securities and Exchange Commission filing by the publicly traded Cabela’s.

It’s not the first time the FTC was given an extension under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Under the act, the FTC and the Justice Department’s Antitrust Division have time to review potential mergers “until the companies provide certain additional information about the likelihood that the proposed transaction would substantially lessen competition,” according to FTC.gov.

In November, Bass Pro and Cabela’s granted the FTC a review extension through Dec. 29. On Dec. 30, Cabela’s disclosed the FTC asked for a “second request” to study the acquisition, and it expected a decision in the first half of 2017.

To assuage regulatory concerns, Cabela’s announced earlier this month it would sell its financial arm, World’s Foremost Bank, to Synovus Bank. Synovus plans to sell the division’s credit card assets to Capital One.

Cabela’s and Bass Pro officials expect the deal to close in the third quarter, pending:
    •    regulatory decisions;
    •    the closing of the World’s Foremost Bank sale; and
    •    the July 11 Cabela’s shareholder vote.

CAB shares were trading at $57.69 as of 9:20 a.m., compared with a 52-week range of $45 to $63.60.