Bombardier would give his share to Airbus

Bombardier céderait sa part à Airbus

Airbus is in “discussions” advanced with Bombardier to acquire its stake from 33.6 % in the aircraft program A220, indicated yesterday the Wall Street Journal.

  • READ ALSO : The Bombardier family has little invested in the range of aircraft C Series

An announcement could be made as early as next week, while the two companies will present their financial results for the fourth quarter of 2019.

The daily financial new york did not mention the value of the potential transaction.

At the time assign a participation of 50,01 % in the former C Series and Airbus, in July 2018, Bombardier attributed a value of $ 1.76 billion US $ to its interests in the remaining 33.6 %.

Reduced value

The multinational quebec has, however, indicated last month that it was expected that the value of the A220 is reduced “significantly” because of the need to invest more money, the postponement of the achievement of the threshold of profitability and a ” performance less than expected over the duration of the program.”

The government of Quebec, which has an interest of 16.4% in the A220 by virtue of an investment of 1 billion US $ in 2016, did not intend to re-inject funds in the program. The value of his participation is therefore expected to diminish due to the dilution effect that will result in the reinvestment of Airbus and the depreciation referred to by Bombardier.

According to the Wall Street Journal, an agreement between Bombardier and Airbus would provide that the european airplane manufacturer, to take at his expense the investment of 350 million US $ made by the montreal company in the A220 in 2019.

According to the agreement between the two parties, Bombardier is investing $ 350 million US in A220 by the end of 2021, but the manufacturer wishes to waive this requirement because of its precarious financial situation.

The A220 employs approximately 2700 people in Mirabel.

♦ In addition to his talks with Airbus, Bombardier has held discussions with the American Textron and the French Alstom for the disposal of its divisions of business aircraft and rail products.

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