Brookfield Infrastructure Partners and GATX Corporation have agreed to acquire the $4.4bn railcar portfolio of Wells Fargo, marking a major strategic shift for the US banking group. 

The transaction includes a vast fleet of rail operating leases and a substantial rail finance lease book, underscoring Wells Fargo’s ongoing focus on core banking operations.

The deal is expected to close by early 2026, with Wells Fargo indicating it will have no material impact on earnings. The sale represents the culmination of a divestment strategy announced in 2021 under CEO Charlie Scharf, as the bank continues to streamline its portfolio by shedding non-core units.

The joint venture between Brookfield and GATX will acquire approximately 105,000 railcars, with Brookfield holding a 70% stake and GATX retaining 30%. GATX has the option to acquire full ownership of the platform over time. Its initial equity commitment is $400m.

Brookfield Infrastructure will separately acquire Wells Fargo’s rail finance lease assets, comprising 23,000 railcars and 440 locomotives. GATX will manage the JV’s commercial and operational activities, overseeing customer relationships and day-to-day operations.

The combined platform includes rolling stock originally acquired by Wells Fargo in its 2015 purchase of GE’s railcar business, spanning over 135,000 railcars and 850 locomotives servicing key industries such as agriculture, energy, and construction materials.

Debt financing for the deal is being provided by Wells Fargo Securities, BofA Securities, MUFG Bank, and Sumitomo Mitsui Banking Corporation, with the package consisting of a $3.2bn five-year unsecured term loan and a $250m revolving credit facility.

This transaction follows Wells Fargo’s broader efforts to exit legacy enforcement actions, including the termination of 2015 regulatory orders by the Office of the Comptroller of the Currency.

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