European Commission clears AerCap-GECAS merger

Aviation Economics & Finance ge-1.jpg
Grossinger

European Commission gives a green-light for AerCap’s acquisition of General Electric’s leasing arm (GECAS) in a deal estimated to be worth $30 billion. 

The regulator has finished its investigation regarding competition concerns and concluded the companies’ combined market share value would be moderate with adequate competitors in the market.

“The transaction is therefore unlikely to give rise to serious competition concerns in the markets for aircraft and engine leasing,” the Commission wrote in a statement.

As part of the acquisition deal, General Electric is set to receive 46% equity in AerCap.

The initial investigation of the Commission focused on the markets for aircraft and aviation engine leasing being negatively affected by the merger deal. It was adduced that General Electrics is an aircraft engines manufacturer and was unlikely to use its minority shareholding in AerCap to influence the market competition. 

In June 2021, General Electric stated that it intended to conclude the transaction by the end of 2021.