DUBLIN: SMBC Aviation Capital, one of the world's top five aircraft lessors, agreed to buy smaller rival Goshawk Aviation for US$6.7 billion in enterprise value, the two companies said on Monday (May 16).
The deal to create a combined company with €37 billion (US$38.45 billion) in assets comes six months after AerCap Holdings NV consolidated its position as the world's largest aircraft lessor through its takeover of General Electric's leasing business.
SMBC, which is owned by a consortium including Japan's Sumitomo Corp and Sumitomo Mitsui Financial Group, said it would become the second-largest global player by number of aircraft, including jets it currently has on order.
"We are undertaking this transaction at a strategic point in the cycle with a strong recovery building across the global airline industry and we expect the transaction to be accretive to SMBC Aviation Capital's return on capital," SMBC Chief Executive Officer Peter Barrett said in a statement.
SMBC said any Goshawk-owned aircraft that are located in Russia and subject to EU sanctions are excluded from the transaction.
Dublin-based Goshawk is a 50-50 joint venture between Hong Kong-based conglomerate NWS Holdings Ltd and Chow Tai Fook Enterprises Ltd.
The US$30 billion AerCap acquisition was widely predicted to spur further consolidation in a sector that finances over half of the world's passenger jet output, in deals worth around US$150 billion of aircraft every year.