Household International signed an agreement to buy the $3.4 billion AFL-CIO Union Privilege card portfolio from the Bank of New York for $575 million.

The 10-year contract between the bank and the labor organization was scheduled to expire in February.

The AFL-CIO had been seeking a more profitable contract with a card issuer. In February, the group gave Household its endorsement after being guaranteed $375 million over five years.

The Bank of New York was given the opportunity to match Household's offer.

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