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5 Pending Mergers You Need To Know

There are few things in the stock market as exciting as a mergers and acquisitions (M&A) announcement, which refers in this case to a consolidation of publicly-held companies.

Shares can soar or dive in price depending on how the market views the news. Investors try to gauge how effectively the combined company will be able to address its market, and whether the cost of the acquisition was worth it.

There are always multiple M&A opportunities pending, but at the moment there are only a few that everyday investors need to be keeping an eye on.

Today's Most Important M&A Deals

1. Bass Pro Shops' Acquisition Of Cabela's (NYSE: CAB )
As an avid fisherman, I know both these firms and was quite surprised to learn of the buy-out.

The two heavyweights in the outdoor sporting goods market have decided to merge. Cabela's shareholders recently voted to sell itself to privately held Bass Pro Shops for $5.5 billion or $65.50 per share.

The deal was approved by the FTC in early July and includes Cabela's stores, website, and catalog business.

There remains a hurdle to the deal closing. Cabela's banking unit is agreed to be sold to Synovus Financial (NYSE: SNV ) and credit card assets to Capital One (NYSE: COF ) in a separate transaction. However, the sale must be approved by the Federal Reserve before the deal closing deadline of October 3, 2017. Bass Pro Shops can back out of the deal at any time before this date.

Cabela's stock is presently trading in the $59 zone due to the uncertainty. But should this deal go through, the stock could see significant gains.

2. Rite Aid (NYSE: RAD ) And Walgreens Boots Alliance (Nasdaq: WBA ) Merger
First mentioned in October 2015, this merger has been both the darling and bane of investors. It seems every move leads to extensive FTC negotiations and price...


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