THUNDER BAY - Bombardier has reportedly reached a deal to sell its rail division to a French company. The Wall Street Journal reported Sunday that a preliminary agreement worth over $7 billion USD has been made with Paris-based Alstom.
The reported deal comes as the company looks to manage its precarious finances, with over $9 billion USD in debt - much of that coming due in 2025. Bombardier has already sold off most of its aviation division, some of it to Alstom, and is left with only its smaller business jet sector.
Quebec's Caisse de depot et placement (CDPQ), the province's retirement fund manager, is said to have agreed to sell its 32.5 per cent share in Bombardier Transportation, and will purchase a minority stake in the new, combined train company. That entity is expected to generate around $18 billion in annual revenue.
Bombardier Tranpsortation employs around 4,000 people across Canada, with factories in Thunder Bay, Kingston, and Quebec. It's unclear what the sale will mean for those workers. Dominic Pasqualino, president of the Unifor local representing Thunder Bay's Bombardier workers, has downplayed the significance of a potential ownership change.
"In the past, we've been owned by Hawker-Siddeley and Canadian Car, and we've been owned by Lavalin and by UTDC, and now for over 20 years by Bombardier, and we've always been successful," Pasqualino told Tbnewswatch earlier this week.
He added he's sure "it really doesn't matter whose flag is out there. We're going to continue building high-quality products."
