(Reuters) -Wells Fargo said on Thursday it has signed a deal to sell its rail equipment leasing business to a newly formed joint venture between railcar lessor GATX Corporation and Brookfield Infrastructure.
The deal, which the U.S. banking giant said will not have a material impact on its financial position or earnings, includes the entire rail operating lease assets valued at around $4.4 billion, as well as the rail finance lease portfolio.
“This transaction is consistent with Wells Fargo’s ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients,” said David Marks, executive vice president, Wells Fargo Commercial Banking.
In a separate statement, GATX and Brookfield Infrastructure said the rail operating lease portfolio includes roughly 105,000 railcars.
Additionally, Brookfield Infrastructure has also agreed to acquire Wells Fargo’s rail finance lease portfolio, composed of roughly 23,000 railcars and around 440 locomotives.
GATX will initially own 30% and Brookfield Infrastructure 70% of the joint venture, with the former having the option to acquire full ownership over time.
GATX will have commercial and operational control, and manage all joint venture assets.
The companies said they expect the deal to close in the first quarter of 2026 or sooner.
(Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)
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