Today, Target agreed to sell its consumer credit card business to Toronto-Dominion Bank.
TD Bank will purchase the portfolio for an amount equal to the gross value of the outstanding receivables, estimated to be approximately $5.9 billion.
The agreement is for seven years. TD Bank will become the exclusive issuer of Target-branded Visa and private label cards in the United States.
TD Bank is currently the sixth-largest bank in North America.
"Our agreement with Target will significantly expand our presence in the North American credit card business and will establish TD as a key player in this space," said TD Bank Group's CEO Ed Clark in a statement.
The deal is expected to close during the first half of 2013 but is subject to regulatory approval.