BMO eyes US$3 billion in potential sales, including payments venture and transport finance unit

Payments business sale talks and transport finance review signal major portfolio changes for BMO

BMO eyes US$3 billion in potential sales, including payments venture and transport finance unit

Bank of Montreal could see a combined US$3bn shift in its portfolio as it considers two major asset sales, according to Reuters

As per Bloomberg, BMO is exploring the sale of its transportation finance business for about US$1bn, with potential interest from private equity firms and private credit players.  

The unit, which holds about US$11bn in assets, offers loans and leases primarily for trucks and trailers across North America, along with inventory financing and fleet cost management.  

BMO purchased the business from General Electric Capital Corporation about a decade ago to strengthen its commercial banking capabilities.  

No final decision has been made, and the bank may retain the unit. BMO declined to comment. 

At the same time, Reuters reported that BMO and Royal Bank of Canada have placed their Canadian payments joint venture, Moneris, up for sale in a process that could value the company at up to US$2bn. 

Moneris, established in 2000 by the two banks, processes one in every three business transactions in Canada and serves about 325,000 merchant locations with digital, mobile, and in-store payment systems. 

According to Reuters, boutique investment bank PJT Partners, along with RBC Capital Markets and BMO Capital Markets, is advising on the sale.  

Moneris generates close to US$700m in annual revenue, and sources estimate this could translate to a valuation slightly below US$2bn.  

The owners are still in early discussions and could decide to keep part or all of the business.  

BMO, Moneris, and PJT declined to comment, while RBC did not respond to requests. 

Reuters noted that North America’s payments industry has accelerated its shift toward digitization, requiring ongoing capital investment to remain competitive.  

This trend has driven some banks to divest their payments businesses, with buyers including payments companies expanding through mergers and acquisitions and private equity firms seeking stable fee revenue.  

Last month, Canada’s TD Bank announced a strategic partnership with Fiserv involving its Canadian merchant payments operations. 

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