Commission clears the acquisition of sole control over GECAS and joint control over SES by AerCap

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control over GE Capital Aviation Services (‘GECAS'), of the US, and of joint control over Shannon Engine Support Limited (‘SES'), of Ireland, by AerCap Holdings N.V. (‘AerCap'), of The Netherlands. GECAS, owned by General Electric Company (‘GE') of the US, is active in the commercial aircraft leasing and financial industry, offering a broad array of leasing and financing products and services for commercial aircraft, turboprops, aircraft engines, helicopters and materials. SES is a lessor of aircraft engines jointly controlled by GE and Safran Aircraft Engines of France. AerCap's primary business is the leasing of commercial aircrafts. The transaction entails the acquisition by AerCap of GECAS and GE's interest in SES. As part of the transaction, GE will receive a 46% stake in AerCap. The Commission's investigation focused  on the markets for aircraft and engine leasing, and showed that, following the transaction, the companies' combined market shares will remain modest, and that a sufficient number of competitors will stay on the markets. The transaction is therefore unlikely to give rise to serious competition concerns in the markets for aircraft and aircraft engine leasing. In addition, given that GE is an aircraft engines manufacturer, the Commission examined the vertical aspects arising from the transaction, and concluded that it is unlikely that GE would use its minority shareholding in AerCap to affect competition for aircraft engines, aircraft leasing or engine leasing. The Commission therefore concluded that the transaction would raise no competition concerns given its limited impact on the markets concerned. The transaction was examined under the normal merger review procedure. More information is available on the Commission's competition website, in the public case register under the case number M.10231.