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AVIATION
<strong>GE nears US$30bn deal</strong>
General Electric Co (GE) is nearing a US$30 billion-plus deal to combine its aircraft-leasing business with Ireland’s AerCap Holdings NV, the Wall Street Journal reported on Sunday, citing people familiar with the matter. Details of how the deal would be structured were not immediately known, but an announcement was expected yesterday, assuming the talks do not fall apart, the Journal said. The unit, known as GE Capital Aviation Services, is one of the world’s biggest jet-leasing companies and leases passenger aircraft made by companies including Boeing Co and Airbus SE. It owns, services or has on order
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AerCap Holdings N.V. (NYSE: AER) is reportedly in talks to merge with the aircraft leasing business of
General Electric Company (NYSE: GE). Both stocks traded higher on Monday morning following the report, and Bank of America analyst Andrew Obin said the potential merger-could be a win-win situation.
Simplifying GE’s Business: Obin said the sale of GE Capital Aviation Services (GECAS) for AerCap would help further simplify GE’s business, although the structure of a potential deal is not yet certain. Obin estimates GECAS has a tangible book value of about $5 billion.
“If reports are correct, monetizing GECAS would be received positively by many industrial investors, in our view,” he said on Monday.