AerCap to buy GE’s aircraft leasing unit in $30 billion deal

(Reuters) – The world’s two largest aircraft leasing companies are combining to create a new financing giant after Ireland’s AerCap finalised a deal worth more than $30 billion to buy the leasing business of General Electric.

The two companies, which tied the knot on Wednesday after days of speculation surrounding a takeover of GE’s leasing arm GECAS, together control more than 2,000 jets, dwarfing rivals.

The tie-up creates easily the largest buyer of jetliners built by planemakers Airbus and Boeing and will reshape a global air finance industry that has attracted a flood of capital in recent years as investors look for higher returns.

Shares in both New York-listed companies fell about 6% on Wednesday as AerCap prepared to issue new stock to help finance the transaction and GE disappointed expectations of some investors that it would raise its cash outlook.