30 Mar New Suitor Emerges For Cabela’s Bank Operation
Helping support the merger with Bass Pro and Cabela’s, Synovus Financial Corp., a regional bank headquartered in Georgia, has agreed to acquire the financial unit of Cabela’s Inc., a source told Reuters and the Wall Street Journal.
Bass Pro announced in October that it had reached a deal to acquire its Nebraska-based rival for $65.50 per share in cash. The deal was contingent on Capital One Financial acquiring World’s Foremost Bank. However, the Capital One Financial deal was held up by challenges getting timely regulatory approval.
Under the new deal, Synovus will keep the deposits held by the unit and resell its credit-card portfolio to Capital One Financial Corp. Synovus would keep the roughly $1 billion in deposits held by the Cabela’s bank, according to the Journal. The Synovus deal could help Capital One avoid an in-depth regulatory review and allow the deal to be completed quicker.
The closing of Cabela’s merger with Bass Pro is contingent on the closing of the bank transaction.