General Electric Co. GE shares,
rose 2.7% toward a three-year high in Monday morning trading, as the industrial conglomerate is close to a deal of more than $ 30 billion to combine its aircraft leasing business with the AerCap Holdings NV AER, Ireland,
according to a report by The Wall Street Journal. GE shares, which are headed for the fourth consecutive gain, have risen 29.3% in the year to date, to add to a record 73.4% quarterly increase in the fourth quarter. The WSJ report, citing people familiar with the matter, said that GE’s aircraft leasing unit, known as GE Capital Aviation Services (Gecas), is the largest remaining portion of GE Capital, which GE has been looking to divest for years as part of your plan to sustain your balance sheet. In 2020, GE Capital experienced a revenue decline of $ 1.5 billion, or 17%, from the previous year, mainly because of GECAS, which was hit hard by the COVID-19 pandemic and the effects of Boeing Co. BA,
737 MAX grounds. In the past 12 months, GE shares rose 48.6%, while SPDR Industrial Select Sector ETF XLI,
rose 30.5% and the S&P 500 SPX,
advanced 29.9%.
