BMO Financial Group said October 29 that it completed the previously announced sale of its Transportation Finance and Vendor Finance businesses to Stonepeak.
The bank's closing announcement said approximately 75% of the estimated C$14.5 billion combined loan and lease portfolio transferred at closing. That initial transfer represented about C$11 billion. These figures describe portfolio balances, rather than the transaction's purchase price.
BMO expects the remaining balances to transfer in the first quarter of its 2027 fiscal year, subject to customary conditions.
The bank retains a 19.9% interest in the Stonepeak-managed acquiring entity. The businesses will operate under the name Longview Capital Solutions.
A transition-services agreement provides for BMO to supply certain services while the businesses move to the new ownership structure.
BMO expects the transaction to improve its common equity Tier 1 capital ratio by approximately 23 basis points in its fiscal fourth quarter. That capital-ratio effect remains a company expectation.
Sources: BMO October 29 closing announcement: https://www.prnewswire.com/news-releases/bmo-closes-sale-of-transportation-and-vendor-finance-businesses-850893092.html