The Federal Reserve on Wednesday signed off on the sale of Cabela's World's Foremost Bank, paving the way for the company to complete its merger with Bass Pro Shops.
The Fed released a 23-page order Wednesday afternoon that said it concluded the sale of the bank to Columbus, Georgia-based Synovus Financial "would not have a significantly adverse effect on competition or on the concentration of resources in any relevant banking market."
Synovus, which joined the deal in April after Capital One ran into regulatory issues, plans to take over $1.2 billion in assets from the bank, keep certificates of deposit and sell the credit card assets to Capital One.
The sale of the bank assets was the last hurdle to clear in Cabela's $4 billion sale to rival Bass Pro Shops. The deal received Cabela's shareholder approval and the approval of anti-trust regulators in July.
The deal is now expected to close before Oct. 3. Though Bass Pro Shops will continue to use the Cabela's name and keep its stores open, there are likely to be layoffs of Cabela's employees in Sidney, where the outdoors retailer has its headquarters.
The company employs around 2,000 people in the town of about 7,000, and though Bass Pro has said it plans to keep a "significant" presence there, it has acknowledged that there will be job cuts.
The outlook for Lincoln is brighter. Capital One has said it plans to keep the credit card operation based in Lincoln and appears likely to keep most if not all of the more than 500 people working there.
Emails sent to all four companies seeking comment were not returned.
Investors seemed to breathe a sigh of relief after the Fed's announcement. Though it came after the close of U.S. stock markets, Cabela's stock rose 14 percent in after-hours trading.
There had been speculation that if the Fed did not approve the bank sale by the Oct. 3 deadline for the merger to close, that Bass Pro would seek a lower price or walk away from the deal.