GE Nearing Massive Deal with AerCap

Issue 61

03.08.21 - General Electric is reportedly nearing a deal to combine its jet-leasing business with AerCap, in a potential deal that would combine the world’s two biggest aircraft financiers in a market severely disrupted by the coronavirus pandemic.

A transaction may be announced as soon as this week, said the people, who asked not to be named discussing the matter. The deal is expected to have a value of more than $30 billion, said the Wall Street Journal, which reported the talks earlier. Shares of both companies gained.

Between them, GE Capital Aviation Services, or Gecas, and AerCap have almost 3,000 aircraft owned, managed or on order. A combination would speed GE Chief Executive Officer Larry Culp’s push to streamline the U.S. industrial icon after an epic corporate meltdown.

While terms of the potential agreement with AerCap are unclear, a sale of Gecas could garner GE about $25 billion, Bloomberg Intelligence said in a report in 2019. Last year, GE completed the sale of its bio-pharmaceutical business to Culp’s former employer, Danaher Corp., for $21.4 billion.

Source: Wall Street Journal