Regulators approve sale of Cabela’s
The roughly $4 billion sale of outdoor outfitter Cabela’s to rival Bass Pro Shops appears ready to close after regulators approved the sale of Cabela’s credit card unit.
The Federal Reserve said Wednesday it approved the sale of the credit card business to the Georgia-based bank Synovus, which will keep $1.2 billion in deposits but resell the business to Capital One.
That should clear the way for Bass Pro to pay $61.50 per share to acquire Cabela’s. Shareholders and the Federal Trade Commission already signed off on the deal.
The deal is expected to close before its Oct. 3 deadline. It’s not clear how many of the roughly 2,000 jobs based in Cabela’s hometown of Sidney, Neb., will remain afterward.
Privately held Bass Pro is based in Springfield, Mo.
McCafe drinks to be sold in stores
McDonald’s said Wednesday it will roll out coffee drinks in retail stores early next year, part of a plan to increase awareness of its McCafe line of frappés, lattes and other espresso-based drinks.
Starting next year, the bottled drinks will be distributed to retail stores nationwide through a partnership with the Coca-Cola Co. and come in three flavors: caramel, vanilla and mocha. Starbucks has a similar line of bottled coffee drinks available at convenience stores and other retailers.
McDonald’s also is expanding its McCafe offering in restaurants. The world’s largest burger chain said it will add a caramel macchiato, Americano and cappuccino to its line of lattes and mochas. The cappuccino will be available with French vanilla, caramel or hazelnut flavor, and the macchiato will be offered hot or iced. They will be offered for $2, as part of a discount drink promotion McDonald’s started earlier this year to spur repeat visits.
McDonald’s has struggled for years to win back customers from its rivals and get existing ones to come back more often. The company has said it believes improved coffee options are a key to this effort, because “coffee creates a habit.” In other words, people are more likely to visit McDonald’s every day for a coffee than they are for a burger and fries. McDonald’s also has made other changes to make bakery items more prominent in its restaurants, like creating customer- facing bakery display cases for muffin tops and other assorted morning goodies.
Trade deficit widens as exports decline
The U.S. trade deficit increased slightly in July as exports slipped a bit more than imports.
The Commerce Department said Wednesday the trade gap reached $43.7 billion in July, up from $43.5 billion in June. Exports declined $600 million to $194.4 billion, while imports slid $400 million to $238.1 billion.
The trade deficit had narrowed in the spring as exports of U.S. computer products and farm goods rose. U.S. exporters benefited from a decline in the value of the dollar, which makes American products cheaper overseas. Solid global growth also helped, as economies from Europe to Asia to Latin America are expanding simultaneously. Exports in June were the highest in 2 1/2 years.
Still, the trade gap this year is running ahead of last year’s level as rising consumer spending and greater business investment draws in more imports.