Some details:
http://www.cbc.ca/news/business/bombardier-airbus-c-series-1.4357567
Europe's Airbus to buy majority stake in Bombardier CSeries program - The Canadian Press - Oct 16, 2017 6:42 PM ET
CSeries headquarters will remain in Montreal area, 2nd assembly line will be set up in Alabama
European aircraft giant Airbus Group is buying a majority stake in Bombardier's CSeries program.
The two aircraft manufacturers announced the partnership Monday evening, weeks after the United States announced 300 per cent preliminary duties on exports of the aircraft following a complaint from Airbus rival Boeing.
The CSeries headquarters will remain in the Montreal area but a second assembly line for the 100- to 150-seat plane will be set up at an Airbus facility in Alabama.
The partnership is expected to result in significant CSeries production cost savings by leveraging Airbus's supply chain expertise.
Airbus will acquire a 50.01 per cent interest in the CSeries Aircraft Limited Partnership, which manufactures and sells the plane.
Bombardier will own 31 per cent and the Quebec government's investment agency will hold 19 per cent.
https://beta.theglobeandmail.com/report-on-business/bombardier-sells-majority-stake-in-c-series-to-airbus/article36610340/?ref=http://www.theglobeandmail.com&
Bombardier sells majority stake in C Series to Airbus - 16 Oct 17
Bombardier Inc. has struck an agreement to sell control of its marquee C Series airliner program to Europe's Airbus in a surprise move that gives the Canadian plane maker more firepower in a battle against Boeing Co.
Under an agreement announced Monday evening, Airbus said it will buy a 50.01 per cent interest in the C Series limited partnership and provide procurement, sales and marketing and customer support expertise to the airliner program. Bombardier's stake would be 31 per cent and Quebec will own about 19 per cent.
"I have no doubt that our partnership with Bombardier will boost sales and the value of this program tremendously," Airbus chief executive Tom Enders said in a statement. "Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K., and China but we also bring new jobs to the U.S. Airbus will benefit from strengthening its product portfolio in the high-volume single-aisle market."
The partnership should more than double the value of the C Series program and ensure the airliner realizes its full potential, Bombardier chief executive Alain Bellemare said.
No cash is changing hands in the deal and the C Series partnership assumes no debt as part of the transaction, the partners said
http://business.financialpost.com/transportation/airlines/europes-airbus-to-buy-majority-stake-in-bombardiers-cseries-bombardier
Europe's Airbus to buy majority stake in Bombardier's CSeries - Alicja Siekierska - October 16, 2017
The agreement brings together Airbus' global reach and scale with Bombardier's newest, state-of-the-art jet aircraft family
Bombardier Inc. announced late Monday that rival aerospace giant Airbus SE will acquire a majority stake of the CSeries program, a major strategic move that comes as the company faces the prospect of permanent massive duties in the U.S.
Under the agreement, which was signed Monday, Airbus will acquire a 50.1 per cent stake in the CSeries program. Bombardier will now own approximately 31 per cent, while Investissement Quebec will own 19 per cent.
“Airbus is the perfect partner for us, Quebec and Canada,” Bombardier chief executive Alain Bellemare said in a statement.
“Their global scale, strong customer relationship and operational expertise are key ingredients for unleashing the full value of the C Series.”
The partnership comes as Bombardier grapples with 300 per cent duties on U.S. imports of its C-Series jet, thanks to a petition filed with the U.S. Department of Commerce and U.S. International Trade Commission by its rival, the Boeing Co.
The Commerce Department imposed hefty duties against Bombardier, issuing a 220 per cent countervailing duty and 80 per cent anti-dumping duty, largely over the sale of 75 CSeries jets to Delta Air Lines Inc.
On a conference call with reporters Monday, Bellemare and Airbus chief executive Tom Enders said the partnership was not motivated by the ongoing trade dispute with Boeing.
“This is win-win for everybody,” Enders said in a statement. “The C Series, with its state-of-the-art design and great economics, is a great fit with our existing single-aisle aircraft family and rapidly extends our product offering into a fast growing market sector. I have no doubt that our partnership with Bombardier will boost sales and the value of this programme tremendously.”
Bellemare added that the company will continue to fight the trade case against Boeing, stressing that there was strategic value to joining forces with Airbus.
“We are confident that we will have huge success with this program moving forward,” Bellemare said.
According to the press release, the companies expect “significant C Series production costs savings” as a result of leveraging Airbus’ supply chain expertise.
The joint venture’s headquarters and “primary assembly line” will remain in Quebec, but Airbus will add C Series production at its factory in Alabama to serve U.S. customers.
The deal came following earlier in the day that Bombardier was looking for investors and considering selling parts of its aerospace business.
According to a Bloomberg report citing sources familiar with the matter, Bombardier had been considering a disposal of assets, including its Q400 turboprop and CRJ regional-jet unit.
In a note to clients released Monday, Credit Suisse analyst Robert Spingarn said there was “some logic” in Bombardier either pursuing a possible sale of its CRJ or Q400 program, or looking at a joint venture that may involve the CSeries, particularly given the trade tariffs imposed by the U.S. government.
The previously beleaguered CSeries program — which was both overdue and over-budget for years — has been a crucial part of the chief executive Alain Bellemare’s five-year turnaround plan aimed at improving cash flows and increasing profit growth.
The Quebec government acquired a 49.5 per cent stake in the CSeries program for $1-billion in 2015.
