Aircraft lessor SMBC Aviation nears $7 billion deal for rival Goshawk, sources say

CTF Services

14/05/2022 01:36

By Anirban Sen and David French
    May 13 (Reuters) - SMBC Aviation Capital, one of the world's
biggest aircraft lessors, is nearing a deal to acquire smaller
rival Goshawk for about $7 billion, including debt, people
familiar with the matter said on Friday. 
    The deal between the two privately held, Dublin,
Ireland-based lessors could be announced as soon as next week,
the sources said, speaking on condition of anonymity. It would
create a global aircraft leasing giant as consolidation sweeps
the industry. 
    Last year, the world's two largest aircraft leasing
companies, Ireland's AerCap and GE's leasing arm GECAS, merged
in a deal worth more than $30 billion. 
    SMBC Aviation Capital, which is owned by a consortium
including Japan's Sumitomo Corp  8053.T  and Sumitomo Mitsui
Financial Group  8316.T , has a fleet of more than 750 owned,
managed and committed aircraft, mostly Boeing and Airbus
short-haul models, according to its website. 
    Goshawk, which is a 50-50 joint venture between Hong
Kong-based conglomerate NWS Holdings Limited  0659.HK  and Chow
Tai Fook Enterprises Limited, has an owned, managed and
committed fleet that consists of 222 aircraft, its website
showed. 
    A spokesperson for SMBC Aviation Capital declined comment.
Goshawk did not immediately respond to a comment request. 
    The trade publication AirFinance Journal first reported the
talks between the two companies in November. 
    A flurry of deals has reshaped a global air finance industry
that has attracted a huge swathe of capital in recent years.
    The aviation investment arm of private equity firm Carlyle
Group Inc  CG.O  agreed last year to buy aircraft leasing
company Fly Leasing Ltd for $2.36 billion, including debt. In
December, Carlyle's aviation arm also agreed to buy Irish
leasing firm AMCK Aviation's portfolio of aircraft.

 (Reporting by Anirban Sen in Bengaluru and David French in New
York; Editing by Will Dunham)
 ((Anirban.Sen@thomsonreuters.com; (within U.S.+1 646 223 8780;
outside U.S. +91 80 6182 3583) Twitter: @asenjourno;))