A subsidiary of Japan’s Sumitomo Mitsui Finance and Leasing Co (SMFL) is set to purchase the helicopter leasing division of Britain’s Macquarie Group in a deal exceeding 1500 billion yen (approximately $1 billion USD), marking a significant expansion in the global aviation leasing market. The acquisition, announced on Monday, involves SMFL LCI Helicopters (SMFLH) taking over Macquarie Rotorcraft, a move that positions the Japanese group among the world’s top helicopter lessors.

The deal aims to bolster SMFL’s fleet to meet rising demand for helicopters in emergency medical services, disaster relief, and other critical sectors. Macquarie Rotorcraft, a key player in the industry, leases helicopters to operators worldwide, and its integration into SMFLH is expected to nearly double the group’s fleet size, enhancing its global reach. Industry analysts see this as a strategic step to capitalize on growing needs in regions prone to natural disasters and those expanding air medical services.

SMFL, a joint venture between Sumitomo Mitsui Financial Group and Sumitomo Corporation, has been expanding its aviation portfolio through SMFLH, which already operates a substantial helicopter leasing business. The acquisition reflects a broader trend of consolidation in the leasing sector, driven by increasing operational costs and the need for scale. Posts on X highlight the deal’s scale, with users noting it could position SMFLH as a near-leader in the global market.

The transaction, valued at over $1 billion based on current exchange rates, awaits regulatory approval but underscores Japan’s growing influence in international aviation leasing. Neither company disclosed exact terms, though sources suggest it aligns with SMFL’s ambition to diversify and strengthen its presence in high-demand industries amidst a competitive global landscape.