: SMBC discloses $560 million loss in sale of rail car leasing business to ITE

Sumitomo Mitsui Financial Corp. JP:8316 said Tuesday it would take an after-tax loss of $560 million in its sale of SMBC Rail Services to New York-based private-equity firm ITE Management LP, for an undisclosed sum. The deal comes about six years after it acquired the railcar company from Icahn Enterprises IEP for an initial sale price of up to $3.36 billion. Terms of the transfer of SMBC Rail Services to ITE Management LP were not immediately disclosed. SMBC Rail Services acquired Flagship Rail Services LLC in 2013 and American Railcar Leasing in 2017 to build up its fleet of rail cars to 50,000 as one of the leading leasing companies in the space, SMBC said. SMBC said it’s shedding the unit as part of an effort to focus on commercial banking, sales and trading, and digital banking.

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