China’s HNA Group agreed to buy CIT Group's aircraft-leasing business for USD 10 billion. The deal would create the world’s third-largest rental fleet.
HNA’s Avolon Holdings will expand its lineup to 910 aircraft valued at more than USD 43 billion, including planes on order, the company said Thursday in a statement. The acquisition is scheduled to close in the first quarter after regulatory and shareholder approval.
The purchase roughly doubles Avolon’s fleet and vaults it into the ranks of the top aircraft lessors. HNA-controlled Bohai Leasing Co. acquired Avolon in a USD 7.6 billion deal that closed in January.
Airlines in Asia will fly more than 16,000 planes within 20 years, almost tripling the current number, according to estimates by Boeing Co. In the past three decades, the number of aircraft owned by operating lessors jumped 11% a year, according to Singapore-based Phillip Capital Pte.
The CIT deal doubles HNA’s more than USD 10 billion of acquisitions already announced this year, according to data compiled by Bloomberg, and expands its travel and leisure business spanning airports, airlines and hotels.
HNA posted 2015 revenue of almost 190 billion yuan (USD 28 billion) and had about 200,000 employees worldwide, according to its website.
Wall Street Journal reported that private-equity firm Blackstone Group LP has agreed to sell Pactera Technology International, one of its largest assets in China, to HNA Group's subsidiary HNA EcoTech for about USD 675 million in cash.
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