Cabelas Inc (NYSE:CAB) has been given approval by the Federal Trade Commission (FTC) to complete its merger with Bass Pro Shops.
The approval for the merger deal between Cabela’s and Bass Pro Shops was made known to the companies on July 3, 2017. CAB then informed the U.S. Securities and Exchange Commission (SEC) in an 8-K filing.
The deal between Cabela’s and Bass Pro Shops will have the former becoming a wholly-owned subsidiary of the latter. The deal still needs to undergo other customary closing conditions. This includes a special meeting of stockholders that will be held on July 11.
Cabela’s also still needs to complete the sale of World’s Foremost Bank before it can merge with Bass Pro Shops. It is planning to sell the business to Synovus Financial Corp. (NYSE:SNV) and Capital One Financial Corp. (NYSE:COF). COF was originally going to purchase all of World’s Foremost Bank, but couldn’t due to regulatory issues.
The deal will have and Bass Pro Shops buying Cabela’s for $4.2 billion, or $61.50 per share. The original deal put CAB’s value at $5.5 billion, or $65.50 per share. However, changes were made to the deal after the trouble of selling World’s Foremost Bank came about, reports Fox Business News.
Jim Duffy, an analyst from Stifel Nicholas, says that the approval from the FTC for the merger makes it much more likely that the two companies will complete the deal. The two companies are expecting the deal to close later this year.
As of this writing, William White did not hold a position in any of the aforementioned securities.