Business News: To merge aircraft leasing unit with AerCap, GE nears deal.
General Electric is nearing a deal worth more than $ 30 billion to combine its aircraft leasing business with Ireland’s AerCap Holdings, the Wall Street Journal reported Sunday, citing people familiar with the matter.
Details of how the deal would be structured weren’t immediately known, but an announcement is expected on Monday, assuming talks don’t end, the WSJ said.
The GE unit, known as GE Capital Aviation Services, or Gecas, is the largest remaining chunk of GE Capital, a once sprawling loan operation that rivaled major U.S. banks but nearly sank the company during the financial crisis of 2008. GE has already taken a big step backwards from lending business in 2015, when it said it would pull out of most of GE Capital, and a deal for Gecas would represent another big move in that direction.
It would also represent another significant move by GE CEO Larry Culp to straighten the course of a company that has been mistreated in recent years by tightened prospects for some of its core business lines and a structure that has fallen out of favor. among investors.