PARIS (Reuters) – European aircraft maker Airbus (PA 🙂 signed an agreement Thursday to purchase the remaining stake in Canadian aircraft and train manufacturer Bombardier (TO 🙂 in the A220 passenger aircraft program.
The agreement signals Bombardier's exit from commercial aviation by transferring the remaining stake in Airbus Canada to the main parent company of Airbus SE and the government of the Canadian state of Quebec.
Bombardier will receive $ 591 million after adjustments are made and will no longer have to provide capital to Airbus Canada. The deal will secure more than 3,300 Airbus jobs in Quebec, the companies added.
Bombardier added that the transaction would also help the company, which faced a money crisis in 2015, to improve its overall financial position.
"This transaction supports our efforts to improve our capital structure and completes our strategic exit from commercial aerospace," said Alain Bellemare, President and Chief Executive.
Sources have told Reuters that the Bombardier rail unit can also be sold to the French group Alstom (PA :), although a deal between Alstom and Bombardier has not yet been completed.
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