Canada's Bombardier has entered into an agreement to sell its CRJ
regional jet division to Mitsubishi Heavy Industries.
The Japanese company will purchase Bombardier's CRJ division
for $550 million and will take on approximately $200 million in Bombardier's
debt. The transaction, which is subject to regulatory approval, is expected to
close during the first half of next year, the companies said Tuesday.
Mitsubishi said the acquisition would be complementary to
its SpaceJet regional aircraft program, which expects to deliver its first
regional jet next year. Under the deal, Mitsubishi is to acquire the
maintenance, support, refurbishment, marketing, and sales activities for CRJ aircraft,
including the related services and support network.
"The CRJ program has been supported by tremendously
talented individuals," Mitsubishi CEO Seiji Izumisawa said in in a prepared
statement. "In combination with our existing infrastructure and resources
in Japan, Canada and elsewhere, we are confident that this represents one
effective strategy that will contribute to the future success of the Mitsubishi
Under the agreement, Bombardier will retain its CRJ
production facility in Quebec. The company expects to conclude production of
CRJ aircraft in the second half of 2020, following delivery of its current
With the sale of its regional aircraft division, Bombardier
will focus its aerospace activities on business jets. In 2017 Bombardier made
its first move away from the commercial jet market when it merged its C-Series
aircraft with Airbus. Those aircraft have since been renamed the Airbus
A220-100 and A220-300.
Mitsubishi rebranded its regional jet program with the
SpaceJet name this month. The line includes the 88-seat M90, which has been on
sale since 2008, and the newly announced 76-seat M100.
The SpaceJet series will compete against the dominant
regional aircraft market position of Embraer's E-Jets. Embraer is in the
process of merging with Boeing.