Latest news with #railleasing
Yahoo
5 days ago
- Business
- Yahoo
Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio
The $4.4 billion rail equipment leasing division of Wells Fargo & Company (NYSE:WFC) will be sold to a joint venture between Brookfield Infrastructure and GATX Corporation. A team of bankers in suits, discussing the success of the company's banking products. The agreement covers the whole rail operating lease portfolio, which consists of about 105,000 railcars, as well as the rail finance leasing portfolio, which consists of 440 locomotives and 23,000 railcars. According to Wells Fargo & Company (NYSE:WFC), the deal fits with its plan to streamline operations and will not have a significant effect on its financials. Brookfield Infrastructure will own 70% of the business, with the possibility that GATX Corporation may eventually acquire the entire company. GATX Corporation will oversee operations and initially hold a 30% stake in the business. It's anticipated that the deal will close by Q1 2026. David Marks, executive vice president, Wells Fargo & Company (NYSE:WFC) Commercial Banking, commented: "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," GATX Corporation acquires operational control, strengthening Brookfield Infrastructure's capital depth and its freight transport infrastructure network. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
6 days ago
- Business
- Bloomberg
Wells Fargo Agrees to Sell Railcar Assets to Brookfield, GATX
Wells Fargo & Co. agreed to sell the assets of its rail equipment leasing business to a venture between Brookfield Infrastructure Partners and GATX Corp. as the bank continues to refocus on its core lending and advisory businesses. The sale includes Wells Fargo's portfolio of rail operating lease assets, which have a book value of about $4.4 billion, as well as its rail finance lease portfolio, the bank said Thursday in a statement. The deal, which isn't expected to materially impact earnings, should close by early next year, it said.
Reuters
6 days ago
- Business
- Reuters
Wells Fargo signs deal to sell $4.4 billion rail assets portfolio
May 29 (Reuters) - Wells Fargo (WFC.N), opens new tab 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 (GATX.N), opens new tab and Brookfield Infrastructure (BIP.N), opens new tab. 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.
