Federal Reserve approves sale of Cabela's banking unit to GA financial institution

By  | 

WASHINGTON, D.C. (KNEP) - What is likely the last major hurdle in the sale of Cabela's to Bass Pro Shops has been removed with Federal approval of the sale of the Sidney, Nebraska company's banking unit.

According to an order released Wednesday from the Federal Reserve System, Synovus Bank will be allowed to acquire World's Foremost Bank, Cabela's credit-card bank subsidiary. The order says the sale can proceed no sooner than Sept. 21, and must be completed by early December.

Under the proposal, the Columbus, Georgia-based bank will assume approx. $1.2 billion in WFB deposits, $4.1 billion in non-deposit liabilities and substantially all of WFB's assets, equaling approx. $5.7 billion. Capitol One is anticipated to operate the credit card receivables once the sale is complete.

The sale of the credit-card operation was considered one of the final remaining pieces that needed to fall into place to allow the sale of Cabela's to Bass Pro Shops to move forward. In July, the merger received overwhelming support by Cabela's shareholders, with 53 million shares, or 78% of the outstanding common stock, voted in favor of the deal. Cabela's officials had previously indicated they were hoping to close the deal with Bass Pro Shops during the third quarter of this year.