A Chinese group agreed to buy 80.1 percent of American International Group Inc. (AIG)’s plane-leasing unit (0067543Q) for $4.23 billion in the nation’s largest acquisition of a U.S. company.
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The acquisition gives the group control of the world’s second-largest aircraft lessor as rising travel in China and Asia spurs demand for planes. AIG, which counts the U.S. government as its largest investor, is selling the Los Angeles- based unit as Chief Executive Officer Robert Benmosche focuses on insurance operations and works to reduce debt.
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The group investing in ILFC includes New China Trust, China Aviation Industrial Fund and P3 Investments Ltd., AIG said. China Life Insurance Co. (2628) and a unit of ICBC International Holdings Ltd., the investment banking arm of the world’s biggest bank, may also join once the deal is approved by regulators and the option to buy a further stake is exercised, it said.
Full article: Chinese Group Buys 80% of AIG Plane Unit for $4.2B (Bloomberg Businessweek)
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