Shares of Bombardier soar following new deal

Shares of Bombardier up more than 20 per cent after singing CSeries deal with Airbus

Shares of Bombardier soar following new deal

Shares in Bombardier Inc. soared more than 20 per cent in early trading after the company gave up majority control of its CSeries aircraft program to European company Airbus Group.

Bombardier shares were up 53 cents at $2.89 on the Toronto Stock Exchange, shortly after trading began Tuesday.

The move followed an announcement of a partnership between the two aircraft manufacturers after the close of markets Monday.

Related: Compensation to Bombardier senior executives rose nearly 50 per cent last year

The agreement comes in the wake of an announcement by the United States of 300 per cent in preliminary duties on exports of the aircraft following a trade complaint by Boeing.

Under the deal, the CSeries headquarters and main assembly line will remain in the Montreal area, but a second line will be set up at Airbus’s plant in Alabama to meet demand from U.S. customers and avoid duties.

The partnership is expected to result in lower production costs, but Airbus won’t be paying any money for the stake or absorb Bombardier’s (TSX:BBD.B) large debt.

Related: Canada, U.K. using CETA as new trade model

Airbus will acquire a 50.01 per cent interest in the CSeries Aircraft Limited Partnership in exchange for access to its sales, logistics, procurement and support expertise. Bombardier will own 31 per cent and the Quebec government’s investment agency will hold 19 per cent.

Airbus can buy out Bombardier after 7.5 years and the Quebec government in 2023.

The Canadian Press

Just Posted

The Binche Fishing Derby at Stuart Lake is fast approaching. (Binche Fishing Derby Facebook photo)
Binche shares excitement for upcoming fishing derby

“It’s more than just fishing,” says Dave Birdi

A person receives a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. (THE CANADIAN PRESS/Jonathan Hayward)
Local youth vaccination clinics underway

Pfizer vaccine will be used

Priya Sharma. (Submitted)
Column: Why ultimatums don’t work

By Priya Sharma It is a common misconception that people can choose… Continue reading

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed teen facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

The George Road wildfire near Lytton, B.C., has grown to 250 hectares. (BC Wildfire Service)
B.C. drone sighting halts helicopters fighting 250 hectares of wildfire

‘If a drone collides with firefighting aircraft the consequences could be deadly,’ says BC Wildfire Service

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

A North Vancouver man was arrested Friday and three police officers were injured after a 10-person broke out at English Bay on June 19, 2021. (Youtube/Screen grab)
Man arrested, 3 police injured during 10-person brawl at Vancouver beach

The arrest was captured on video by bystanders, many of whom heckled the officers as they struggled with the handcuffed man

Most Read