Capital One credit card acquisition facing regulatory delays

Capital One Financial in McLean, Va., is facing regulatory delays in its bid to buy a credit card business from the outdoor equipment chain Cabela's.

Cabela's disclosed in a recent regulatory filing that the Office of the Comptroller of the Currency is unlikely to approve the transaction before the deal's Oct. 3 termination date. The companies had previously said they expected to close the deal in the first half of this year.

Capital One, however, informed Cabela's that it should eventually secure OCC approval. The agency's review is taking into consideration progress Capital One is making to address a 2015 consent order that flagged the company for deficiencies in anti-money laundering compliance tied to a former check-cashing business, Cabela's filing said.

Cabela's also disclosed that it received a request from the Federal Trade Commission for more information and documents tied to its own planned sale to Bass Pro Shops.

Capital One agreed in October to buy Cabela's credit card operations, which includes about $5.2 billion in receivables and $5 billion in associated funding liabilities. Capital One also announced a 10-year exclusive agreement to issue cobranded cards to Cabela's customers.

Cabela's said it is working with Capital One and Bass Pro Shops to evaluate alternative structures that could permit the deal to close by Oct. 3.

Mark Kauzlarich/Bloomberg