Regulators approve Bass Pro Shops, Cabela’s merger

Federal regulators have approved a merger between two giant outdoors retailers.

In a securities filing on Wednesday, Cabela’s Inc. said it had received permission from the Federal Trade Commission to move forward with the company’s $5 billion sale to Bass Pro Shops.

The merger is contingent upon approval from Cabela’s shareholders, as well as the sale of Cabela’s bank unit to outside financial services corporations.

Cabela’s shareholders are due to vote on its sale to Bass Pro Shops next week. The company has previously reported that it faces a handful of class-action lawsuits from groups of shareholders stemming from the merger.

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The two companies announced their intention to merge in October, with Bass Pro Shops aiming to buy Cabela’s for $5.5 billion, creating an outdoors gear chain with nearly 200 locations across the United States.

Since then, the terms of the deal changed, with the price falling by $500 million and Cabela’s agreeing to sell its financing unit to Synovus Financial Corp. and Capital One Financial.

The deal is expected to close later this year.