Avolon Holdings Ltd, part of China's aviation conglomerate HNA Group, announced on Thursday that it will acquire CIT Group Inc's aircraft leasing business for $10 billion, which is expected to be sealed by first quarter of 2017.

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The acquisition will make Avolon the world's third largest aircraft leasing company, after AerCap Holdings and GE Capital Aviation Services.

Avolon will borrow $8.5 billion through debt financing, while the rest of the transaction will be funded by cash and new equity by HNA Group-controlled Bohai Leasing Co Ltd.

The move will help double Avolon's aircraft fleet size and will boost 910 aircrafts valued at over $43 billion, Avolon said in a statement. 

The report of Avolon closing in on the CIT's acquisition was first reported by Reuters last month. China's Ping An Insurance Group's aircraft leasing division and Century Tokyo Leasing were two other companies involved in the acquisition race.

The CIT Group deal is the latest in HNA Group's acquisition spree.

Over the recent years, the aviation and shipping conglomerate has been focussing on business expansion and enhancing its global presence.  This year, it acquired Carlson Hotels and a Swiss airline catering firm Gategroup. It even picked up 13 percent stake in Virgin Australia.

It was further disclosed that CIT Group's aircraft leasing business has a cumulative asset of $11.1 billion, while liabilities are at $1.7 billion, as of June 30.

However, it is worth noting that CIT Group's shares were up 7.58 percent at $39.16 in extended trading on Thursday. 

TagsHNA Group, Avolon Holdings Ltd, CIT Group Inc, Bohai Leasing Co Ltd