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Wells Fargo signss deal to sell $4.4 Billion Rail Assets Portfolio

Wells Fargo announced on Thursday that it had signed a contract to sell its rail-equipment leasing business to the newly formed joint venture of railcar lessor GATX Corporation with Brookfield Infrastructure.

The entire rail operating lease portfolio, valued at $4.4 billion and the rail finance leasing portfolio are included in the deal.

David Marks is executive vice president of Wells Fargo Commercial Banking. He said that the transaction was in line with Wells Fargo’s strategy to simplify our businesses, and focus on products and service offerings that are important to our customers.

GATX, Brookfield Infrastructure and other companies have released a statement stating that the rail operating leasing portfolio consists of approximately 105,000 railcars.

Brookfield Infrastructure also has agreed to purchase Wells Fargo’s rail finance leasing portfolio. This includes approximately 23,000 railcars, and 440 locomotives.

GATX initially will own 30% of the joint venture and Brookfield Infrastructure 70%, with the latter having the option to purchase the full ownership at a later date.

GATX will be in charge of all commercial and operational aspects, as well as managing the joint venture assets.

The companies expect that the deal will close by the first quarter of the year 2026, or earlier. (Reporting by Manya Saini in Bengaluru; Editing by Vijay Kishore)

(source: Reuters)