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Airbus, Government Of Quebec Buy Bombardier's Remaining Stake In Airbus Canada

Airbus SE (EADSF.PK,EADSY.PK) announced Thursday that Bombardier Inc. (BBD.B.TO) transferred its remaining shares in Airbus Canada Limited Partnership, responsible for the A220 programme, to Airbus and the Government of Quebec. The transaction is effective immediately.

With the transaction, Bombardier will receive a consideration of $591 million from Airbus, net of adjustments. Of this amount, $531 million was received at closing and $60 million will be paid over the 2020-21 period.

The agreement brings the shareholdings in Airbus Canada to 75 percent for Airbus and 25 percent for the Government of
Quebec, respectively.

Bombardier reportedly was holding 34% stake in the two companies' joint A220 commercial jet program.

The Government's stake is redeemable by Airbus in 2026 - three years later than before. As part of this transaction, Airbus, through its unit Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Quebec.

Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

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