BMO announces agreement to sell its transportation and vendor financing businesses

May 12, 2026 - 08:38

TORONTO -- BMO Financial Group has reached a deal to sell its transportation and vendor financing operations to Stonepeak, a U.S.-based investment firm. The sale marks a strategic shift for the Canadian bank as it moves to streamline its portfolio and focus on core banking services.

The businesses being sold include a range of lending and leasing services tied to commercial transportation equipment, as well as vendor financing programs that help companies fund their supply chains. While BMO did not disclose the exact financial terms of the agreement, the move is part of a broader trend among major banks to shed specialized lending units that fall outside their primary retail and commercial banking operations.

Stonepeak, which focuses on infrastructure and real assets, is expected to integrate the acquired businesses into its existing portfolio. For BMO, the sale allows the bank to free up capital and reduce exposure to cyclical sectors like transportation, which can be sensitive to economic downturns and fuel price volatility.

The transaction is subject to regulatory approvals and is expected to close in the coming months. BMO has indicated that the deal will not have a material impact on its overall earnings for the current fiscal year. The bank continues to expand its presence in the United States through other channels, including its recent acquisition of Bank of the West.