Bombardier To Get USD$1 Bln Investment From Quebec

Bombardier said the Canadian province of Quebec has agreed to invest USD$1 billion in its CSeries aircraft.

Bombardier said it would transfer the assets, liabilities and obligations of the programme to a newly created limited partnership, in which the company will hold a 50.5 percent equity stake and Quebec the rest.

The investment, which has been in the offing for months, will be made in two instalments of USD$500 million, with the first on June 30 and the second on September 1.

Quebec and Bombardier want the federal government to match the province's USD$1 billion investment in the narrow-body jet, but talks have dragged on amid governance concerns by the government over the plane-maker's dual class share structure.

Quebec Premier Philippe Couillard said earlier this month the terms of the federal and Quebec deals with Bombardier would need to be complementary but not necessarily the same.

Brazil and Canada have locked horns repeatedly at the World Trade Organisation over the past two decades over state support for Embraer and Bombardier.

Bombardier will maintain operational control of the CSeries and consolidate its financial results, the company said in a statement.

The limited partnership's board will consist of five directors, three of whom will be proposed by Bombardier and two by Quebec.