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Thursday, December 12, 2013

SMFG buying Perella Weinberg's U.S. railcar lease business, (NYSE: SMFG)

Sumitomo Mitsui Financial Group said it will acquire the U.S. railcar leasing business of Perella Weinberg Partners LP, illustrating the continued appetite of Japanese banks for overseas assets.Japan's third-largest lender by assets did not disclose terms of the deal, but a source familiar with the matter said the bank is likely to pay 30-50 billion yen ($290-$490 million).In a statement issued on Thursday, Sumitomo Mitsui Banking Corp, a core unit of SMFG, said an increase in shale oil and gas production is driving up demand for rail freight transportation in the United States."The U.S. railcar leasing business will continue to be positively impacted by robust overall demand from the U.S. rail freight transportation industry," it said.

Sumitomo Mitsui Financial Group, Inc. (SMFG) is principally engaged in the operation of banking business. Shares of SMFG fell by 1.53% or $-0.15/share to $9.68. In the past year, the shares have traded as low as $6.53 and as high as $10.50. On average, 1430850 shares of SMFG exchange hands on a given day and today's volume is recorded at 871907.