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

© Reuters. ARCHIVE PHOTO: The SMBC Aviation Captial logo is shown in this illustration taken on May 4, 2022. REUTERS / Dado Ruvic / Illustration

By Anirban Sen and David French

(Reuters) – SMBC Aviation Capital, one of the world’s largest aircraft lenders, is approaching an agreement to acquire a smaller rival Goshawk for about $ 7 billion, including debt, people familiar with the deal said on Friday. subject.

The agreement between the two private landlords, based in Dublin, Ireland, could be announced as early as next week, sources said, speaking on condition of anonymity. It would create a global aircraft rental giant as consolidation sweeps the industry.

Last year, the world’s two largest aircraft leasing companies, Ireland’s AerCap and GE GECAS’s leasing arm, merged into a deal worth more than $ 30 billion.

SMBC Aviation Capital, owned by a consortium that includes Japan’s Sumitomo Corp. and Sumitomo Mitsui (NYSE 🙂 Financial Group, has a fleet of more than 750 owned and operated aircraft, primarily short-haul Boeing (NYSE 🙂 models. and Airbus. , according to its website.

Goshawk, a 50-50 joint venture between Hong Kong-based NWS Holdings Limited and Chow Tai Fook Enterprises Limited, owns a managed, committed and committed fleet of 222 aircraft, its website said.

A spokesman for SMBC Aviation Capital declined to comment. Azor did not immediately respond to a request for comment.

The commercial publication AirFinance Journal first reported talks between the two companies in November.

A flurry of deals has reshaped a global air finance industry that has attracted a lot of capital in recent years.

The aviation investment branch of the private equity firm Carlyle Group (NASDAQ 🙂 Inc. agreed last year to buy the aircraft leasing company Fly Leasing (NYSE 🙂 Ltd for $ 2.36 billion, including debt. In December, Carlyle’s aviation arm also agreed to buy the aircraft portfolio from Irish leasing company AMCK Aviation.

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