Aircraft rental company SMBC Aviation is nearing a $7 billion deal for rival Goshawk, By Reuters sources say

(Reuters) – SMBC Aviation Capital, one of the world’s largest aircraft lessors, is close to a deal to acquire smaller competitor Goshawk for about $7 billion, including debt, people familiar with the matter said on Friday.

The deal between the two privately owned Dublin, Ireland-based landlords could be announced as early as next week, the sources said on condition of anonymity. It would create a global aircraft leasing giant as consolidation grips the industry.

Last year, the world’s two largest aircraft leasing companies, Ireland’s AerCap and GECAS, GE’s leasing arm, merged in a deal worth more than $30 billion.

SMBC Aviation Capital, owned by a consortium that includes Japan’s Sumitomo Corp and Sumitomo Mitsui (NYSE:) Financial Group, has a fleet of more than 750 owned, managed and operated aircraft, primarily Boeing (NYSE: ) and Airbus short-haul models, according to its website.

Goshawk, a 50:50 joint venture between Hong Kong-based conglomerate NWS Holdings Limited and Chow Tai Fook Enterprises Limited, has a owned, managed and dedicated fleet consisting of 222 aircraft, the website revealed.

A spokesman for SMBC Aviation Capital declined to comment. Goshawk did not immediately respond to a request for comment.

The AirFinance Journal first reported on the talks between the two companies in November.

A flurry of deals has reshaped a global air finance industry that has attracted a huge pool of capital in recent years.

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