U.S. signs off on Ca­bela’s, Bass Pro deal

Northwest Arkansas Democrat-Gazette - - WEATHER REPORT -

SID­NEY, Neb. — U.S. an­titrust reg­u­la­tors have ended their in­ves­ti­ga­tion into Bass Pro Shops’ $4 bil­lion deal to buy Ca­bela’s, Ca­bela’s said Wed­nes­day.

The Ne­braska chain said the Fed­eral Trade Com­mis­sion signed off on the deal ear­lier this week, but bank­ing reg­u­la­tors still haven’t ap­proved one part of the trans­ac­tion.

Ca­bela’s share­hold­ers will vote on the deal, which would pay them $61.50 per share, next Tues­day.

Stifel Ni­cholas an­a­lyst Jim Duffy said gain­ing Fed­eral Trade Com­mis­sion ap­proval makes it much more likely that the merger will be com­pleted.

In ad­di­tion to sell­ing Ca­bela’s stores, web­site and cat­a­log busi­ness to Bass Pro, the com­pany plans to sell its credit-card unit.

Ul­ti­mately, the deal calls for the credit-card busi­ness to be sold to Cap­i­tal One. But first a Ge­or­gia-based bank named Synovus will buy the unit as a mid­dle­man. Synovus will hold on to the credit-card unit’s $1.2 bil­lion in de­posits be­fore re­selling it to Cap­i­tal One.

The deal is ex­pected to close later this year. It’s not clear how many of the roughly 2,000 jobs based in Ca­bela’s home­town of Sid­ney, Neb., will re­main af­ter­ward.

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