On Wednesday, General Electric(NYSE:GE) took the next step in its dramatic transformation under CEO Larry Culp. The industrial titan finalized a deal to sell its GECAS aircraft-leasing business to top rival AerCap(NYSE:AER) as Culp seeks to simplify GE and refocus on its core industrial businesses.

While GE stock rose earlier this week following rumors of a potential deal with AerCap, the shares gave back those gains after the agreement was formally announced. Let's see how this move impacts the investment case for General Electric and AerCap.

Under the deal announced this week, AerCap will pay approximately $31 billion for GECAS. That consists of $24 billion of cash, 1.1 billion shares of AerCap -- currently worth about $6 billion and equivalent to a 46% stake -- and an additional $1 billion that AerCap can pay in cash or notes at its option.

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