The American Multinational company General Electric Co ( GE ) is nearing a deal with Ireland’s AerCap Holdings for $30 billion to combine its jet-leasing business ( Behemoth Aircraft Lessor ).
GE capital aviation services and AerCap both have 3,000 aircraft owned.
Mark Martin, founder of Dubai-based Martin Consulting said that this deal will help both the company’s and the airline industry together.
He also mentioned that GE and AerCap has renewed their interest for engine refinance and engine leasing.
AerCap, which is based in Dublin and listed in New York Stock Exchange, has a market value of $6.6 billion. The shares had advanced by 11% this year through March 5.
As General Electric had completed the sale of its bio-pharmaceutical business to Danaher Corp for $21.4 billion.
John Strickland, The London based airline advisory firm JLS Consulting said:
This deal would mark a significant consolidation in the leasing sector at a time of “extreme uncertainty” for aviation, the combined company would have greater negotiating advantage with manufacturers like Boeing Co. and Airbus SE.
General Electric, previously in 2019 agreed to sell an aircraft-financing business for $3.6 billion to Athene Holding Ltd and Apollo Global management, the same year, Culp sped up a plan to sell off GE’s stake in oilfield-services provider baker Huges.
Culp has been shedding assets in recent years as part of his broader turnaround effort at GE after a collapse that wiped out a total of more than $200 billion in market value during 2017 and 2018. Under his leadership, the Gecas portfolio has been left in something akin to “caretaker status,” Ferguson said.
Gecas CEO Greg Conlon said at the Airline Economics conference in January that the company was looking at mergers and acquisitions and portfolio purchases.
