Big box merger deal off

Two of the USA’s biggest outdoor equipment retailers – Sportsman’s Warehouse and Bass Pro Shops – have seen their planned merger collapse.

Sportsman’s Warehouse and Bass Pro owner Great Outdoors Group opted to terminate the deal after the Federal Trade Commission indicated the companies wouldn’t get clearance to complete it, according to a regulatory filing.

The deal was first revealed a year ago with both parties saying it was a logical move due to shared interests, histories and business ideals.
However, the announcement has proved costly for both companies. Great Outdoors will pay a $55 million termination fee while shares in Sportsman’s Warehouse slumped 2.6 per cent to $16.50 on the news. The Utah-based company had a market value of $743 million at the close.

Sportsman’s Warehouse would have gone private through the transaction, which valued the company at $18 a share.

The collapse is seen as a result of President Joe Biden signing an executive order in July calling on regulators to take steps to boost competition in industry. He blamed unchecked consolidation for harming consumers, workers and small businesses.