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Do you think the DOJ will force catch and release on this deal?

The WSJ reports Bass Pro Shops is buying rival Cabela's Inc. for the sum of $4.5B. Together they will control 20% of the market.

If you were a DOJ lawyer, would you allow this under Sherman Antitrust Act of 1890 and the Clayton Antitrust Act of 1914?

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Interesting.... I just saw this: Salesforce is pushing regulators to block the Microsoft-LinkedIn deal stating it would be anticompetitive...

Chris Shumate
Title: Accounting Manager
Company: Dominion Development Group, LLC
LinkedIn Profile
(Accounting Manager, Dominion Development Group, LLC) |

This is a deal I'm interested following as I'm part of each of their target market. I read a little bit more on regarding their business locations. Cabela's is mostly in the western United States and have stores in Canda. Bass Pro is mostly on the east coast and they likewise have stores in Canada. Given their respective locations it does appear to create an issue of U.S. dominance.

Something I need to be educated on is the combined market percentage control of 20%. Who makes up the other 80? I know of Gander Mountain as we have one in Knoxville. Are analysts considering stores like Dick's Sporting Goods and Academy in the 80% number? Why is 20% such a big deal for a company to own?

I read that the activist investor owned only 11% in Cabela's. What makes such a small percentage ownership create so much influence as to have a company sellout?

For me personally, I never shop at Cabela's nor have I ever. There isn't one close to me. If there were I would visit it. I can, however, be at Bass Pro Shop in Sevierville or Gander Mountain in Knoxville in about the same time. I will always choose Bass Pro Shop because of the huge fish tank, taxidermied animals on display, their boats, and of course let's not forget about the over-priced latte a camo-wearing redneck can get while shopping for guns and ammo, among other merchandise.

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