Dick's Sporting Goods Suspends Foot Locker Acquisition for FTC Review

Dick's Sporting Goods has paused its merger with Foot Locker for FTC review, with plans to resubmit its pre-merger notification on July 25, 2025. The merger is expected to be completed in the second half of 2025, pending regulatory approvals and shareholder agreement. Dick's Sporting Goods is a major player in the retail industry, specializing in sporting goods and apparel, and has a strong financial performance and strategic acquisitions.

Dick's Sporting Goods has paused its merger with Foot Locker, with plans to resubmit its pre-merger notification on July 25, 2025. The merger is expected to be completed in the second half of 2025, pending regulatory approvals and shareholder agreement.

The delay was announced to allow the Federal Trade Commission (FTC) more time to review the merger under the Hart-Scott-Rodino Antitrust Improvements Act. Both companies expect to complete the merger in the second half of 2025, assuming regulatory approvals and shareholder agreement.

Dick's Sporting Goods is a major player in the retail industry, specializing in sporting goods and apparel. It has a strong financial performance and a history of strategic acquisitions. Foot Locker, on the other hand, is known for its wide range of sports-related products and has a significant market presence in the athletic retail sector.

The merger aims to create a retail giant with over 3,200 locations worldwide. Dick's plans to run Foot Locker as an independent business unit, maintaining its brand identity and management team. The merger will strengthen global reach, leverage both companies’ digital platforms, and enhance relationships with key athletic brands while generating substantial cost synergies.

The terms of the deal give Foot Locker shareholders the option to receive either $24.00 in cash or 0.1168 shares of Dick's common stock for each share of Foot Locker common stock. Shares of Foot Locker closed at $25.48 on Wednesday.

The most recent analyst rating on Foot Locker stock is a Hold with a $30.00 price target. According to Spark, TipRanks’ AI Analyst, Foot Locker is a Neutral, reflecting significant financial challenges and valuation concerns, partially offset by positive technical indicators and strategic advancements.

References:
[1] https://www.tipranks.com/news/company-announcements/foot-locker-merger-review-delayed-by-ftc
[2] https://seekingalpha.com/news/4471293-dicks-sporting-goods-and-foot-locker-extend-the-regulatory-review-period-for-the-planned-merger
[3] https://www.investing.com/news/sec-filings/foot-locker-and-dicks-sporting-goods-extend-antitrust-review-period-for-merger-93CH-4150179