Target sells credit card business to TD Bank

Target Corp (TGT.N) announced it has agreed to sell its credit card portfolio to Toronto-Dominion Bank (TD.TO)(TD.N). The deal was nearly two years in the making.

TD will pay $5.9 billion. In addition, TD signed a 7-year agreement to be the exclusive issuer of Target-branded Visa and private-label cards in the United States.

In the second quarter of 2012, the percentage share of sales in Target stores paid with Target’s REDcard credit and debit cards rose from 8.7 percent a year earlier to 12.8 percent.