Aircraft leasing company AerCap Holdings said on Friday it would buy rival Genesis Lease Ltd in an all-stock deal valued at $1.75 billion.
Genesis shareholders will receive one AerCap common share for each Genesis share, which under the terms of the deal would be worth $8.81 each.
The exchange ratio represents a 4.2 percent premium to Genesis's closing price of $8.45 per share on Thursday on the New York Stock Exchange.
Genesis shareholders are expected to own approximately 29 percent of the combined company. The deal is expected to close in the fourth quarter.
Genesis's shares fell 2.6 percent, or 22 cents, to $8.23, while AerCap fell 3 percent, or 26 cents, to $8.55 on Friday in early trading on Friday.
(Reporting by Deepa Seetharaman and Paritosh Bansal, editing by Dave Zimmerman)