Capital One Faces Delays for Cabela’s Credit Card Merger
Capital One was set to acquire the credit card business for Cabela’s, but a new regulatory obstacle could put those plans on hold. This transaction was part of a $4.5 billion merger in which Bass Pro Shops would purchase Cabela’s Inc., but now the Federal Trade Commission is requesting additional information before approving the deal.
Originally, Bass Pro Shops was scheduled to complete the acquisition by the end of June, with Capital One taking over the credit card sector at that time. The request from the FTC will likely push those plans back to October. This does not create much of an issue, but it could put a strain on certain locations where Cabela’s and Bass Pro Shops both have a strong presence. After the merger is complete, Bass Pro Shops will have more than 180 locations, and the company will control 20% of the hunting and fishing market in the United States.
Cabela’s believes the FTC will still complete its approval within the first half of the year, but the company said they are also exploring other ways to structure the merger and avoid a delay. The FTC has not commented on the matter.
Capital One agreed to pay $200 million for Cabela’s credit card division after the deal with Bass Pro Shops is finalized. They plan on issuing credit cards to former Cabela’s customers, as well as Bass Pro Shop customers.