After what a Bass Pro Shops spokesperson called a “definitive agreement” in October 2016 comes some not-so-good news for the acquisition of Cabela’s. According to Rich Duprey of AOL Finance, regulatory hurdles are causing some significant issues and inhibiting this potentially industry-changing deal.
The Federal Trade Commission has asked for more information which could delay the closing deadline. These regulatory requests are causing problems for the sale of Cabela’s credit card operations to Capital One. Upon this additional information request, Cabela’s shares fell by 7 percent.
With deals of this magnitude often come lots of regulatory inspection from the FTC, a comission which, historically speaking, doesn’t always play nice when it comes to large mergers. Sources are predicting this will complicate the deal and require divestitures that could significantly delay the closing date.
There are also reports that in a recent fourth quarter earnings call, Capital One Chairman and CEO Richard Fairbank said they were essentially out of the running to get the credit card business.
If the deal is not approved by October 3, 2017, either party is free to walk away.
You can read the full story here.