Airbus is closing in a deal to acquire remaining 34% stake in Bombardier Inc.’s BDRBF, the A220 commercial jet program.
The agreement could be reached as early as next week, ahead of earnings reports of Airbus and Bombadeir.
The Quebec government, which holds a 16% stake in the venture, is expected to hold its stake.
According to sources close to the industry, the talks are in final stages, and they still could fall apart if terms are not agreed upon.
The Montreal based, Canadian plane make has been struggling to reduce roughly $9 billion of long-term debt, some of which comes due next year.
The company is seeking to pare its debts by selling the stake in the Airbus partnership and one of its two other core divisions, according to people familiar with the matter
Also the heavy tariff by U.S to import CSeries to America challenged the future of A220s.
Airbus stepped in took 50.01% stake in the CSeries program in July 2018, almost for nothing. It paid virtually no cash for the stake but committed to throwing its global marketing behind the jet.
Bombardier, meanwhile, committed to covering the program’s losses over a set period.
Under the new terms, Airbus would absorb the $350 million in losses that Bombardier was required to cover this year, according to the people familiar with the matter.