Shares of Bombardier soar following new deal

Shares of Bombardier up more than 20 per cent after singing CSeries deal with Airbus

Shares of Bombardier soar following new deal

Shares in Bombardier Inc. soared more than 20 per cent in early trading after the company gave up majority control of its CSeries aircraft program to European company Airbus Group.

Bombardier shares were up 53 cents at $2.89 on the Toronto Stock Exchange, shortly after trading began Tuesday.

The move followed an announcement of a partnership between the two aircraft manufacturers after the close of markets Monday.

Related: Compensation to Bombardier senior executives rose nearly 50 per cent last year

The agreement comes in the wake of an announcement by the United States of 300 per cent in preliminary duties on exports of the aircraft following a trade complaint by Boeing.

Under the deal, the CSeries headquarters and main assembly line will remain in the Montreal area, but a second line will be set up at Airbus’s plant in Alabama to meet demand from U.S. customers and avoid duties.

The partnership is expected to result in lower production costs, but Airbus won’t be paying any money for the stake or absorb Bombardier’s (TSX:BBD.B) large debt.

Related: Canada, U.K. using CETA as new trade model

Airbus will acquire a 50.01 per cent interest in the CSeries Aircraft Limited Partnership in exchange for access to its sales, logistics, procurement and support expertise. Bombardier will own 31 per cent and the Quebec government’s investment agency will hold 19 per cent.

Airbus can buy out Bombardier after 7.5 years and the Quebec government in 2023.

The Canadian Press

Just Posted

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

(TNRD Library)
Let the mystery of the Summer Reading Club begin

Are you ready to ‘Crack the Case’ at the Barriere Library?

(Metro Creative photo)
Gardeners of all ages invited to enter 2021 NT Fall Fair contests

The North Thompson Fall Fair Drive Thru scheduled for Saturday, Sept. 4,… Continue reading

Milsom Lodge was built in the East Barriere Valley when the Milsom brothers purchased two parcels of land in 1911, DL 2323 and DL2324. (Milsom’s photo)
The Milsom Lodge: The mansion, the ballroom, the history

“At the turn of the century, when so many families were leaving… Continue reading

teaser
Ladies Golf close enough for a cheery wave

A new month - new COVID rules - a new start. For… Continue reading

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

“They will never be forgotten, every child matters,” says Sioux Valley Chief Jennifer Bone in a video statement June 1. (Screen grab)
104 ‘potential graves’ detected at site of former residential school in Manitoba

Sioux Valley Dakota Nation working to identify, repatriate students buried near former Brandon residential school

The Queen Victoria statue at the B.C. legislature was splattered with what looks like red paint on Friday. (Nicole Crescenzi/News Staff)
Queen Victoria statue at B.C. legislature vandalized Friday

Statue splattered with red paint by old growth forest proponents

Police cars are seen parked outside Vancouver Police Department headquarters on Saturday, January 9, 2021. THE CANADIAN PRESS/Darryl Dyck
Vancouver police officer charged with assault during an arrest in 2019

The service has released no other details about the allegations

Denmark’s Christian Eriksen receives medical attention after collapsing during the Euro 2020 soccer championship group B match between Denmark and Finland at Parken stadium in Copenhagen, Saturday, June 12, 2021. (AP Photo/Martin Meissner, Pool)
Christian Eriksen in stable condition, Euro 2020 match resumes

Eriksen was given chest compressions after collapsing on the field during a European Championship

Most Read