Mitsubishi to Complete Acquisition of Bombardier's Regional Jet Division on June 1

Mitsubishi Heavy Industries (MHI) and Bombardier Inc. of Canada have agreed that all closing conditions have been met and the transaction pertaining to the acquisition of Canadair Regional Jet (CRJ) Program will close on June 1, 2020.

In June 2019, Mitsubishi and Bombardier had entered into an agreement, whereby MHI will acquire Bombardier's regional jet program for a cash consideration of $550 million USD, payable to Bombardier upon closing, and the assumption by MHI of liabilities amounting to approximately $200 million USD.

Under the agreement, Bombardier's net beneficial interest in the Regional Aircraft Securitization Program (RASPRO), which is valued at approximately $180 million USD, will be transferred to MHI.

The Program will be operated under the newly created group entities of MHI RJ Aviation Group (MHIRJ) and will commence upon closing. In return Mitsubishi will pay Bombardier

As part of the acquisition, MHI acquires the maintenance, support, refurbishment, marketing, and sales activities for the CRJ Series aircraft, along with the type certificates. This includes the CRJ related services and support network mainly located in Mirabel, Québec, and Toronto, Ontario in Canada, Bridgeport, West Virginia, and Tucson, Arizona in the United States. CRJ Spare parts will continue to be distributed from depots in Chicago, Illinois and Frankfurt, Germany.

Complementary to MHI's existing commercial aircraft business, MHIRJ will provide a holistic servicing and support solution for the global aircraft industry including the CRJ Series aircraft, and eventually, for the Mitsubishi SpaceJet family of next-generation regional jets.