Gun owners eager to see the effects of the merger of Cabela’s and Bass Pro Shops, both major sporting-goods retailers that sell firearms, should have the chance soon. Federal regulators have allowed the move to proceed, cheering the leadership at Cabela’s and causing the retailer’s stock price to rise.
Guns.com reports that the Federal Reserve has approved the sale of World’s Foremost Bank, the financing arm of the Cabela’s empire, following the conditions of the merger. Observers saw an immediate 14 percent surge in Cabela’s stock. The retailer experienced poor quarterly sales, which CEO Tommy Millner blamed in part on the liquidation of bankrupt competitor Gander Mountain’s gun inventory, and is hoping that buying Bass Pro Shops will open up new opportunities.
We’ll have to wait and see what consequences this merger has in terms of firearm prices and availability, but that wait isn’t looking so long anymore.