Chinese Group Buys 80% of AIG Plane Unit for $4.2 Billion
Bloomberg….Click LINK for complete article….thank you.
A Chinese group agreed to buy 80.1 percent of American International Group Inc. (AIG)’s plane-leasing unit for $4.23 billion in the nation’s largest acquisition of a U.S. company.
The International Lease Finance Corp. acquirers, led by New China Trust Co. Chairman Weng Xianding, have an option to buy another 9.9 percent, New York-based AIG said today in a statement. The transaction, which values ILFC at $5.3 billion, passes China Investment Corp.’s $3 billion purchase of a stake in Blackstone Group LP (BX) in 2007 as the biggest Chinese-U.S. deal.
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.
“This ILFC deal squarely places the leasing business where future growth will be,” said Will Horton, a Hong Kong-based analyst at CAPA Centre for Aviation. “There are large opportunities in China, but also in countries like Indonesia and Malaysia.”
China and Indonesia will account for about 40 percent of all aircraft deliveries through 2026, with the two countries taking more than 500 planes each, he said.
Wild Thing’s comment.…………….
China is buying up large pieces of American business … well … after all … they pretty much own our finances … and with Obama’s spending habits … they will be foreclosing on the White House in no time at all!
This goes along perfectly with this:
http://youtu.be/JlkLhVo3PbY
I hate seeing America bought up. However, I remember, I think it was in the early 90’s when Japan was buying everything in America that was for sale. Then, wham, the Japanese economy went into a recession too big for them to handle. They had to dump most of their US aquisitions at bargain basement prices. China’s economy has also grown way too rapidly and they are on the verge of a massive fianancial readjustment that may also cause them to have to sell off US purchases. The kicker this time though is that we have a president hell bent on killing America’s economy and if the Chinese go bust we may also at the same time.