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26-Jun-2019 8:47 AM

Mitsubishi Heavy Industries acquires Bombardier regional jet programme

Mitsubishi Heavy Industries (MHI) and Bombardier entered (25-Jun-2019) an agreement for MHI to acquire Bombardier's regional jet programme for USD550 million in cash as well as the assumption by MHI of liabilities amounting to approximately USD200 million. Bombardier's USD180 million Regional Aircraft Securitization Program will be transferred to MHI. MHI will additionally acquire Bombardier's maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft, including related services and support network located in Montréal and Toronto and its service centres in Bridgeport and Tucson, as well as the type certificates. Bombardier will retain a fixed amount of certain liabilities representing a portion of the credit and residual value guarantees, totalling approximately USD400 million. MHI president and CEO Seiji Izumisawa stated the transaction represents "one of the most important steps in our strategic journey to build a strong, global aviation capability". The transaction is scheduled to close in 1H2020. [more - original PR]

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