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UPDATE 1-Airbus to take majority stake in Bombardier's C-Series program

Published 2017-10-16, 06:46 p/m
Updated 2017-10-16, 06:50 p/m
UPDATE 1-Airbus to take majority stake in Bombardier's C-Series program

(Adds details)

Oct 16 (Reuters) - Airbus SE AIR.PA said on Monday it would acquire a majority stake in Bombardier Inc's BBDb.TO C-Series passenger jet program.

Airbus will buy a 50.01 percent interest in C-Series Aircraft Limited Partnership (CSALP), which manufactures and sells the planes, the companies said.

Bombardier will own about 31 percent, while Investissement Québec will hold 19 percent once the deal closes.

The deal also provides Airbus warrants exercisable to acquire up to 100 million Class B Shares of Bombardier, the companies said.

The deal comes amid a trade dispute with U.S. rival Boeing (NYSE:BA) Co BA.N over the C-Series jet. The U.S. government has slapped steep preliminary anti-subsidy duties on sales of the C-Series jets over that dispute.

Airbus will provide procurement, sales and marketing, and customer support expertise to CSALP, the companies said on Monday.

There will be no cash contribution by any of the partners, nor will CSALP assume any financial debt, the companies said.

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