GE, AerCap join air leasing businesses in $30 billion deal
Mar 10, 2021
General Electric is combing its aircraft leasing business with Ireland’s AerCap Holdings in a deal valued at more than $30 billion, a big step in what has become a six year endeavor to reshape the one-time global conglomerate
General Electric is combing its aircraft leasing business with Ireland’s AerCap Holdings in a deal valued at more than $30 billion, a big step in what has become a six year endeavor to reshape the one-time global conglomerate.
The agreement to push GE Capital Aviation Services, or GCAS, into a separate business puts GE closer to its goal of shedding most of its enormous financial wing that nearly sank it during the 2008 financial crisis.
AerCap will pay about $24 billion in cash for GCAS, and GE will take an approximately 46% ownership stake in combined company, and $1 billion paid in AerCap notes or cash at closing.
GE also said Wednesday that its board will recommend shareholders approve a reverse stock split at a ratio of 1-for-8 and a corresponding proportionate reduction in the number of authorized shares of common stock.
GE plans to lower its debt by about $30 billion after the deal's closing using transaction proceeds and existing cash sources. This will bringing its total debt reduction since the end of 2018 to more than $70 billion.
More News
Call for more food funding due to high living cost
Deputy Louise Doublet does not think the cost of living was considered in the ending of a trial.
Charity reflects on changing needs over 25 years
Help a Guernsey Child says it has provided in excess of £1.2m worth of essential support.
Nightclubs are disappearing - and it's affecting young people
One young person said with no nightlife in their town they cannot "let loose and mess around".
M.L.B. Playoff Ads With Sydney Sweeney and Megan Fox Draw Backlash
Commercials with Sydney Sweeney promoting a gambling platform and Megan Fox endorsing male enhancement have rankled fans, and even athletes. Who is in charge?
Netflix Hurries to Rewrite Its Narrative With Layoffs and a Sudden Firing
Despite strong revenues and profits, the streaming service cut 1,000 jobs and jettisoned its chief content officer. Drops in the stock price and viewer engagement are to blame.
Why Bad News in the Bond Market May Be Good News for Investors
In the contrarian logic of investing, rising interest rates have made bonds much more attractive, our columnist says.
U.S. Budget Deficit Nears $2 Trillion, a Reality Check for Trump’s Cost Cutting
Higher interest rates are inflating borrowing costs as the Trump administration spends on the Iran war and tariff refunds.
Indonesian Stocks Plunge as MSCI Threatens to Drop Market from Indexes
The potential downgrade by MSCI, an influential index provider, adds to a deepening crisis of investor confidence in the economic policies of President Prabowo Subianto.
Warsh Vows to Tame Inflation as A.I. Delivers ‘Shock’ to Economy
The Federal Reserve chairman stuck to his pledge to avoid providing guidance about the path forward for interest rates, but did nothing to convey an urgency to raise them later this month.
A new railway corridor: How Nanning links Chinese and ASEAN markets
A new railway corridor: How Nanning links Chinese and ASEAN markets
Watch: Did Tesla really just unveil a flying car?
Tesla CEO Elon Musk showcased the vehicle at a facility owned by his SpaceX company, which helped develop the model.
China and Europe are building new connections in aerospace
China and Europe are building new connections in aerospace – from skies to stars. On the one hand, their deep industrial partnership is scaling global civil aviation to new heights. On the other hand, scientific collaboration is opening new possibilities for space exploration and deepening our understanding of the Sun-Earth system.