(Reuters) - Target Corp TGT.N said on Tuesday that it plans to sell its credit card portfolio to TD Bank Group TD.TO, finding a buyer nearly two years after the retailer first said it wanted to sell the business.
TD Bank will pay an amount equal to the gross value of the outstanding receivables when the deal closes. Right now, the gross value is about $5.9 billion.
Target first said it wanted to sell its receivables portfolio in January 2011, then put those plans on hold in January 2012, saying it would restart talks after paying off financing it had with JP Morgan Chase & Co JPM.N.
Reporting by Jessica Wohl in Chicago; Editing by Gerald E. McCormick