Since we originally reported the $5.5 billion deal between Bass Pro Shops and Cabela’s, things have been changing, which led to talks about the acquisition falling apart.
According to a new report from Consumerist, both companies have announced that the deal will, in fact, be moving forward but with two caveats: A price cut of $4 per share of Cabela’s and the addition of a middleman in the sale of credit operations to Capital One.
The high number of recent retail bankruptcies—including that of well-known Gander Mountain—certainly haven’t helped Cabela’s value in this process. It’s also being reported that Cabela’s fourth-quarter sales were less than impressive.
Possibly the primary reason for this price cut comes with the change in the sale of Cabela’s credit card business. Capital One was initially planning to become the buyer, but a regulatory situation forced them to back out. It would have delayed the merger too much.
Synovus Financial Corporation has stepped in to take Capital One’s place and will hold onto $1.2 billion in brokered certificates of deposit. They will also sell the Cabela Club Visa business to Capital One.
As of the time of this report, the companies are still planning to close the deal in the summer or fall of 2017.