Shares of General Electric Co. GE,
rose 2.7% toward a three-year high on Monday morning trading as the industrial conglomerate approaches a $ 30 billion deal to combine its aircraft rental business with AerCap Holdings NV AER, based in Ireland.
according to a report published in The Wall Street Journal. Shares of GE, which are heading for a fourth consecutive gain, have risen 29.3% to date, adding to a record quarterly increase of 73.4% in the fourth quarter. The WSJ report, citing 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, that GE has been looking to divest for years as part of its plan to consolidate its balance sheet. In 2020, GE Capital suffered a $ 1.5 billion, or 17%, drop in revenue from a year ago, primarily due to GECAS, which was hit hard by the COVID-19 pandemic and the effects of Boeing. Co. BA,
Ground connections 737 MAX. Over the last twelve months, GE shares have risen 48.6%, while the ETF XLI of the SPF Industrial Select Sector,
has risen 30.5% and the S&P 500 SPX,
has advanced 29.9%.