Capital One Financial Corp. indicated on Wednesday that it doesn’t expect to receive regulatory approval of its acquisition of Cabela’s credit card business prior to October 3, 2017, when the deal can be terminated by either party.
The news wasn’t a complete surprise but is now more certain. In early January Cabela’s indicated in a regulatory filing that Capital One “likely” will not get federal bank regulators’ approval to acquire Cabela’s World’s Foremost Bank before October 3.
The $200-million transaction was part of a $4.5 billion merger in which Bass Pro Shops would purchase Cabela’s Inc. but wasn’t required to get the mega-merger done. Indeed, the credit-card transaction was contingent on the primary deal closing. Still, both deals were expected to close in the first half of 2017 and the Capital One was expected to help shore up Bass Pro’s post-merger balance sheet.
Capital One said it would “remain committed to this deal and we will continue to work with Cabela’s and Bass Pro toward completing the transaction.”
