Shares of General Electric Co. GE,
climbed a three-year high in morning trading on Monday by 2.7% as the industrial conglomerate is close to a deal worth more than $ 30 billion to combine its aircraft rental business with AerCap Holdings NV AER in Ireland,
according to a report in The Wall Street Journal. GE’s share, which is on a fourth straight profit, has risen 29.3% so far to a record quarterly surge of 73.4% in the fourth quarter. The WSJ report, referring to people familiar with the matter, said GE’s aircraft rental unit, known as GE Capital Aviation Services (Gecas), is the largest remaining piece of GE Capital, which GE has wanted to sell for years as part of his plan. to sharpen its balance sheet. In 2020, GE Capital suffered a $ 1.5 billion decline, or 17%, from a year ago, mainly due to GECAS, which was hit hard by the COVID-19 pandemic and the effects of the Boeing Co . BA,
737 MAX groundings. Over the past 12 months, GE shares have risen 48.6%, while the SPDR Industrial Select Sector ETF XLI,
climbed 30.5% and the S&P 500 SPX,
increased by 29.9%.
