David French and Anirban Sen

(Reuters) SMBC Aviation Capital, the largest aircraft leasing company in the world, is closing in on a deal with Goshawk to buy it for $7 billion including debt.

According to sources, the deal could be made between two Dublin-based, privately owned lessors as early as next week. As consolidation continues to sweep the aviation industry, it would result in a worldwide aircraft leasing company.

The world’s largest two aircraft leasing companies, Ireland’s AerCap, and GE’s leasing arm GECAS combined in a merger worth over $30 billion.

According to the website, SMBC Aviation Capital is owned by a group that includes Sumitomo Corp of Japan and Sumitomo Mitsui Financial Group. It has a fleet more than 750 aircraft. These include short-haul Airbus and Boeing models.

Goshawk (a 50-50 joint venture made by conglomerate NWS Holdings Limited in Hong Kong and Chow Tai Fook Enterprises Limited) has a committed, owned and managed fleet of 222 aircraft. This website shows.

A spokesperson for SMBC Aviation Capital did not respond to a request for comment. Goshawk didn’t immediately reply to our comment request.

AirFinance Journal, a trade magazine, first reported on the negotiations between the companies in November.

Global air finance has been transformed by a flood of transactions that attracted huge amounts of capital in the recent past.

The private equity firm’s aviation investment arm Carlyle Group (NASDAQ:) Inc purchased Fly Leasing (NYSE 🙂 Ltd last year for $2.36billion including debt. Carlyle’s Aviation arm agreed in December to purchase the Irish aircraft portfolio of AMCK Aviation.