(Reuters) -Wells Fargo ( WFC ) 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 ) and Brookfield Infrastructure.

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 ( WFC ) 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 ( 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 ( WFC ) rail finance lease portfolio, composed of roughly 23,000 railcars and around 440 locomotives.

GATX ( 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 ( 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.