General Electric Co. is approaching a deal worth more than $ 30 billion to combine its aircraft leasing business with Ireland’s AerCap Holdings NV, according to people familiar with the matter, the latest in a series of movements of the industrial conglomerate to restructure its once extensive operations.
While the details of how the deal would be structured could not be found out, it is expected to have a valuation of more than $ 30 billion, some people said. An announcement is expected on Monday, assuming the talks do not fall apart.
GE’s unit, known as GE Capital Aviation Services, or Gecas, is the largest portion of GE Capital, a once-extensive lending operation that rivaled the largest US banks, but nearly sank the company during the 2008 financial crisis. GE already took a big step back in the lending business in 2015, when it said it would leave most of GE Capital, and a deal for Gecas would represent another major move in that direction.
It would also represent another significant move by GE’s chief executive, Larry Culp, to correct the course of a company that has been hurt in recent years because of the tightening of prospects in some of its main lines of business and a structure that has fallen into disgrace to investors.
With more than 1,600 own or ordered aircraft, Gecas is one of the largest jet leasing companies in the world, alongside AerCap and Air Lease Corp. It leases passenger aircraft made by Boeing Co. and Airbus SE, as well as regional jets and cargo planes to customers ranging from major airlines to startups. Gecas had $ 35.86 billion in assets as of December 31.