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

The SMBC Aviation Capital logo is displayed in this illustration taken May 4, 2023. REUTERS/Dado Ruvic/Illustration

May 13 (Reuters) – SMBC Aviation Capital, one of the world’s largest aircraft lessors, is set to strike a deal to acquire smaller rival Goshawk for around $7 billion including debt, officials said on Friday. people familiar with the matter.

The deal between the two Dublin, Ireland-based private lessors could be announced as early as next week, the sources said, speaking on condition of anonymity. It would create a global jet leasing giant as consolidation sweeps the industry.

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

SMBC Aviation Capital, which is owned by a consortium including Japanese companies Sumitomo Corp (8053.T) and Sumitomo Mitsui Financial Group (8316.T), has a fleet of more than 750 owned, managed and committed aircraft, primarily Boeing and Airbus in the short term. transportation 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, according to its website. .

A spokesperson for SMBC Aviation Capital declined to comment. Goshawk did not immediately respond to a request for comment.

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

A wave of deals has reshaped a global airline finance industry that has attracted a huge amount 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 company AMCK Aviation’s aircraft portfolio.

Reporting by Anirban Sen in Bengaluru and David French in New York; Editing by Will Dunham

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