Don’t miss the latest developments in business and finance.

Airbus to take majority stake in Bombardier's C-Series programme

Image
Reuters
Last Updated : Oct 17 2017 | 4:28 AM IST

(Reuters) - Airbus SE said on Monday it would acquire a majority stake in Bombardier Inc's C-Series passenger jet programme.

Airbus will buy a 50.01 percent interest in C-Series Aircraft Limited Partnership (CSALP), which manufactures and sells the planes, the companies said.

Bombardier will own about 31 percent, while Investissement Quebec will hold 19 percent once the deal closes.

The deal also provides Airbus warrants exercisable to acquire up to 100 million Class B Shares of Bombardier, the companies said.

The deal comes amid a trade dispute with U.S. rival Boeing Co over the C-Series jet. The U.S. government has slapped steep preliminary anti-subsidy duties on sales of the C-Series jets over that dispute.

Airbus will provide procurement, sales and marketing, and customer support expertise to CSALP, the companies said on Monday.

More From This Section

There will be no cash contribution by any of the partners, nor will CSALP assume any financial debt, the companies said.

(Reporting by Ankur Banerjee in Bengaluru; Editing by Sriraj Kalluvila)

Also Read

First Published: Oct 17 2017 | 4:19 AM IST

Next Story