According to the recent talk, General Electric wants to combine its aircraft leasing business with AerCap. An exact date for the deal’s announcement is unknown, but it could be in the near future.
Other details of the deal are still unclear due to the private nature of the talks. The insiders behind these rumors are also remaining anonymous for that same reason. Even so, it looks like the GE deal could have a value of more than $30 billion.
It’s possible that the AerCap-GE deal could be just what the two companies need to aid them in recovering from the novel coronavirus pandemic. The pandemic wasn’t kind to companies connected to air travel as lockdowns kept many people from flying.
While a merger sounds all well and good, the deal could be called off. AerCap and GE are big players in the aircraft leasing business. That means they could run afoul of antitrust regulations designed to keep them from getting too big, reports Yahoo Finance.
Even so, that isn’t stopping investors from taking stakes in AER stock this morning. As of this writing, more than 3 million shares of AER stock have traded. That’s quite the jump from its daily average trading volume of roughly 1.3 million shares.
AER stock was up 16.6% and GE stock was up 3.8% as of Monday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.