Cabela’s Credit Card Deal to Miss Deadline

Capital One Financial’s proposed $200 million credit card deal with Cabela’s is on the rocks. The deal, which originated in October of 2016, would create a 10-year partnership between Cabela’s and Capital One to co-brand credit cards.

Under the deal, Capital One would also handle credit card operations from Cabela’s.

Individual reports from both and back a statement by Capital One confirming that the Federal Trade Commission is seeking additional information from Cabela’s on the deal.

“The issuance of such a ‘second request’ does not indicate that the FTC has concluded that the transaction raises competition concerns,” says Cabela’s.

The Nebraska-based retailer is in the midst of a $5.5 billion acquisition by Bass Pro Shops, a deal that Cabela’s says they still expect to be approved. The Capital One transaction is contingent upon the merger with Springfield closing.

Capital One’s filing with the FTC says they expect to receive approval by October 3, 2017. If FTC approval is not granted by that date, both parties have the right to walk away from the deal. The transaction was initially expected to be approved during the first half of 2017.