It’s Official! TD Bank Group and Aimia (Aeroplan) confirm agreement; TD to be the new primary issuer of Aeroplan credit cards

Here is the an excerpt from today’s press release from TD Bank confirming what I have (and most other people) have thought would happen:

TD Bank Group and Aimia confirm agreement

  • Enhances TD’s position as a leading North American credit card provider
  • Offers more travel rewards choices for customers
  • Will add significant growth to the premium travel segment of TD’s credit
    card portfolio
  • Discussions are underway regarding current portfolio of Aeroplan credit
    card accounts

TORONTO, Aug. 12, 2013 /CNW/ – TD Bank Group (TD) (TSX and NYSE: TD) and
Aimia Inc. (Aimia) (TSX: AIM) today announced that TD will become the
primary credit card issuer for Aeroplan, a loyalty program owned by
Aimia, starting on January 1, 2014.

New choices for customers

“We are thrilled to have this opportunity to work with Aeroplan to offer
even more choice to our customers, and to grow the premium travel
segment of our credit card portfolio,” said Michael Rhodes, Executive
Vice President, North American Credit Cards and Merchant Services, TD
Bank Group. “The co-branded Aeroplan credit cards will complement TD’s
already strong line-up of cards, and allow our customers to select from
an even wider range of options for earning great travel rewards.”

Beginning in January 2014, TD will offer a full suite of co-branded
Aeroplan Visa credit cards, giving customers several ways to earn miles
for flights and enjoy other features and benefits of the Aeroplan
program, including benefits within Aeroplan’s new Distinction
recognition program that launches in January. Customers will be able to
choose from enhanced premium, premium and mid-market co-branded
Aeroplan credit cards, each providing different benefits and earn
rates. It is expected that the new co-branded credit card line-up will
also include a credit card for U.S. residents and a credit card for
Canadian small business owners.

“The new suite of co-branded credit cards will bring together Aeroplan’s
premier loyalty program with TD’s award-winning customer service and
convenience to build on our position as a leading North American credit
card provider,” added Rhodes. “We look forward to providing more
information about these cards in early 2014.”

Ongoing Discussions

There are ongoing active discussions among TD, Aimia and CIBC about a
broad framework that would see CIBC retain cards held by their
franchise banking customers which are about half the portfolio and TD
acquire the remainder. The parties will work vigorously to try to reach
agreement, complete due diligence and finalize definitive documentation
by August 26, 2013. There can be no assurances that an agreement will
be reached.

TD previously advised that the Aeroplan arrangement would not have a
material impact on 2014 earnings and would make a solid contribution to
2015 earnings. TD does not expect a significant change in that outlook
as a result of the proposed deal but will provide additional disclosure
if an arrangement is reached.

Now we just need to wait and see as to what TD’s offerings will be on these new cards! Based on this line “enhanced premium, premium and mid-market co-branded
Aeroplan credit cards” it is likely we’ll see a Visa Infinite, Visa Platinum and base level Visa Aeroplan card.  There will also be a new card for the US market which I can only assume will replace the current MBNA Aeroplan card offered to US residents.