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Exclusive-AerCap to win unconditional EU okay for $30 billion GE deal - sources

Exclusive-EU set to okay AerCap's $30 billion GE deal without conditions -sources
Exclusive-EU set to okay AerCap's $30 billion GE deal without conditions -sources   -   Copyright  Thomson Reuters 2021
By Reuters

By Foo Yun Chee

BRUSSELS -Irish aircraft leasing company AerCap is set to secure unconditional EU antitrust approval for its $30 billion bid for General Electric’s aircraft leasing business, three people familiar with the matter said.

The deal between the world’s two largest aircraft leasing companies would create a new financing giant and the largest buyer of airliners built by Airbus and Boeing.

The deal will reshape a global air finance industry that has in recent years attracted a flood of capital from investors seeking higher returns.

Analysts said it could also set off more consolidation in the sector, hit by the coronavirus crisis alongside other industries.

The European Commission, which has set a July 26 deadline for its preliminary review of the deal, and AerCap declined to comment. The U.S. Department of Justice wrapped up its review of the deal last month.

The deal to buy GECAS, or GE Capital Aviation Services, includes about $24 billion in cash and $1 billion paid in AerCap notes or cash. It includes 111 million new shares and will give GE a stake of 46% in the AerCap-controlled company.