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What: Shares of aircraft leasing company AerCap Holdings N.V. (NYSE:AER) jumped over 30% today after the company announced an acquisition.
So what: AerCap is buying AIG's (NYSE:AIG) aircraft leasing arm, called International Lease Finance Corp., for $3 billion in cash and 97.56 million shares of new AerCap stock. At today's stock price, the deal is worth about $6.2 billion and will make AIG the largest shareholder with 46% of AerCap's stock.
Now what: This deal was rumored last week and became a reality today with the help of cash financing lined up by AerCap this year. It makes the company the largest aircraft leasing company in the world with a huge backlog of Boeing and Airbus orders. AerCap CEO Aengus Kelly said that was "the jewel in the crown" of the deal.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: long January 2016 $30 calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.