Mitsubishi Heavy Industries to Acquire Canadair Regional Jet Program from Bombardier Inc.
On one hand, hopefully this will mean that no more taxpayer dollars will have to be spent to keep this struggling, badly mismanaged company afloat. Although as a Canadian and a Quebecer it does sadden me to finally see Bombardier exiting the commercial aircraft market - it really did seem like they had a good thing going for a while with the CRJ/Q400/CSeries programs; although the latter it seems was possibly a death blow for the company. I wonder if they'll be able to sustain themselves going forward on the business jet market alone.Mitsubishi Heavy Industries, Ltd (MHI) (TOKYO:7011) and Bombardier Inc (TSX: BBD.B) announced today they have entered into a definitive agreement, whereby MHI will acquire Bombardier’s regional jet program for a cash consideration of $550 million USD, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million USD. Under the agreement, Bombardier’s net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million USD, will be transferred to MHI.
Thoughts?
