Cabela's enters into revised agreements in connection with Bass Pro Shops merger

The outdoor sign seen at the Cabela's store in Denver

Instead, Synovus Financial Corp will purchase World's Foremost Bank, the very modestly-named banking and credit card operations of Cabela's.

Cabela's said Monday that Bass Pro will pay $61.50 per share, or $4.2 billion, for the company, down from $65.50 per share, or $4.5 billion.

Bass Pro Shops is lowering the price it will pay to buy rival outdoor sports retailer Cabela's Inc. - both of which have Colorado stores - as part of an amended merger agreement. Synovus will buy the bank's $1.2 billion in deposits, and then Capital One Financial Corp. Cabela's simultaneously announced it would sell its credit card assets to Capital One, which will continue to operate the Cabela's Club credit card program.

The new merger terms come amid regulatory scrutiny of the deal, although Cabela's did not offer a reason for the revised price.

But Capital One said it wouldn't be able to get regulatory approval before an October merger deadline, due to an unrelated matter involving the U.S. Office of the Comptroller of the Currency, which reviews such deals.

Bass Pro Shops will now buy Cabela's for about $5 billion, $500 million lower than the price agreed upon a year ago.

The two chains operate about 190 locations, but the deal is especially relevant in the Twin City, where Bass Pro operates an anchor store at The Pinnacle in Bristol, Tennessee, and Cabela's anchors The Falls, just a few miles up Interstate 81 in Bristol, Virginia. "We look forward to completing these transactions for the benefit of our shareholders, Outfitters and outdoor enthusiasts". Cabela's board of directors unanimously approved the change; now it's up to the shareholders (and the Federal Trade Commission). "This speaks to one of the greater trends in the industry, in retail but in sporting goods in particular, to create a customer experience that makes it worthwhile to go to a store", IBISWorld analyst Rory Masterson told Retail Dive past year.

Cabela's said on Monday it now expects the Bass Pro merger to close in the third quarter, as planned.

Bass Pro Shops CEO Johnny Morris called the agreement "an important step forward".

"The issuance of such a "second request" does not indicate that the FTC has concluded that the transaction raises competition concerns", Cabela's said in the filing, but rather "reflects a determination by the FTC that it requires additional information to assess the proposed transaction".

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