ITE affiliate to acquire SMBC Rail Services, boosting AITX's fleet

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ITE affiliate to acquire SMBC Rail Services, boosting AITX's fleet
Credit: © Reuters.

In a move that aligns with Sumitomo Mitsui (NYSE: SMFG ) Financial Group's medium-term management plan, ITE Management's affiliate is set to acquire SMBC Rail Services. The acquisition will enhance its industrial transportation assets and add over 50,000 railcars to AITX's fleet. As a leading railcar services solution provider in the freight shipping market, this addition will bolster AITX's railcar repair and maintenance capabilities.

The deal has been announced by both SMBC Group and ITE, with AITX set to receive specific assets and railcars from SMBC Rail Services (SMBC RS). Over the past decade, SMBC Group has strategically reshaped SMBC RS through acquisitions, repositioning, organic growth, and fleet reinvestment.

This acquisition is part of a broader strategy by Sumitomo Mitsui Financial Group to focus on its U.S operations, including the corporate investment bank and sales and trading division. The capital and resource reallocation resulting from this deal will support the growth of Jenius Bank, Sumitomo Mitsui's new digital banking initiative.

The transaction will significantly enhance AITX’s integrated solutions to the freight shipping market. With an additional 50,000 railcars joining their fleet, AITX continues to strengthen its position in the sector.

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