Bank of Montreal sells truck and trailer financing business to Stonepeak for C$14.5B

The Bank of Montreal is parting ways with its truck, trailer, and equipment financing business in a C$14.5 billion cash deal with Stonepeak, the New York-based infrastructure investment firm. BMO announced the sale on May 11, 2026, from both New York and Toronto. The deal covers BMO’s Transportation Finance and Vendor Finance businesses. BMO will retain a 19.9% minority stake post-close.

The transaction is structured as an all-cash acquisition at approximately C$14.5 billion. Financing for the acquisition is being led by PGIM, the investment management arm of Prudential Financial, which is handling the asset-based financing component. Bank of America is serving as the lead arranger on the deal. The deal is expected to close in the fourth quarter of 2026, pending regulatory approvals. BMO is the eighth-largest bank in North America by assets.

Stonepeak manages over $58 billion in assets under management as of early 2026 and has been expanding its portfolio in the infrastructure sector.

By selling these units for C$14.5 billion in cash, BMO frees up capital that can be redeployed into higher-priority areas. The retained 19.9% stake is structured just below the 20% threshold that would typically require equity-method accounting, meaning BMO can book its remaining interest without consolidating the business on its balance sheet.

The Q4 2026 expected close date means there is still time for regulatory curveballs. Cross-border transactions involving a major Canadian bank and a US-based buyer tend to attract scrutiny from multiple jurisdictions.

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