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.

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