Ireland-based AerCap has confirmed that it is in talks with multinational conglomerate General Electric (GE) to acquire the latter’s aircraft-leasing business.

Earlier this week it was reported that AerCap plans to acquire GE’s aircraft-leasing business for an estimated value of more than $30bn.

Known as GE Capital Aviation Services (GECAS), the business is one of the leading passenger aircraft leasing companies.

Despite the confirmation of the talks, AerCap revealed that the outcome of the discussions is yet to be determined and there are chances of the deal not materialising, reported Reuters.

The company stated: “No further statements will be made by the issuers or the company regarding this matter until the time of the conclusion of those discussions.”

According to a regulatory filing, AerCap has assets worth $42bn and owned 939 aircraft and managed 105 airplanes. It also ordered 286 aircraft, which includes the Airbus A320neo and Boeing 737 Max.

Until the end of last year, Gecas had $35.9bn in assets with 1,650 aircraft owned, serviced or on order.

Given the size of the two companies in the sector, the proposed merger is expected to be scrutinised by antitrust authorities, other regulators and business partners, Bloomberg reported.

Bloomberg quoted its intelligence antitrust analyst Aitor Ortiz as saying: “A potential combination of number one and two in any market is usually reason enough for regulators to scrutinise a deal, but it doesn’t necessarily mean that regulators won’t approve it or that significant concessions will be required. The fact that the airline industry is facing turbulence right now may be considered.”