Chinese Group Buys 80% of AIG Plane Unit for $4.2B

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.

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.

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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