Bombardier dismisses concerns over US deal
Uncertainty fears over sale of NI operations amid industry slump
AEROSPACE giant Bombardier has dismissed concerns over the sale of its NI business employing around 2,700 people after the US buyer said there were still conditions to be met.
But DUP East Belfast MP Gavin Robinson urged against complacency over the transaction, which is due to complete at the end of October.
The collapse of the deal would be a major blow to the economy here — which is in a “perilous” state, according to Economy Minister Diane Dodds, who was speaking to members of the Economy Committee in Stormont.
Around 1,500 aerospace jobs have been lost here since the outset of the pandemic, including around 700 in Bombardier.
Spirit Aerosystems in Wichita had agreed to pay up to $630m for the business but in an update on Tuesday, said the deal is looking uncertain.
However, a spokeswoman said last night: “Spirit Aerosystems continues to see the long-term strategic value in the acquisition and is working closely with Bombardier to ensure all conditions are met.
“The Bombardier aerostructures deal brings customer diversification, low cost country footprint and expanded aftermarket content, all of which are in line with our stated strategic growth priorities.”
Covid-19 has weighed heavily on the global aviation industry, with aircraft grounded as quarantine restrictions limit travel.
It’s understood Spirit may now wish to pay less for the business given the deterioration in aerospace as a result of Covid-19. Bombardier said the details were confidential.
Mr Robinson said: “Given the importance of Bombardier to the NI economy, we must never be complacent, but I understand the sales process is progressing well — and given my engagement with them, the synergy and the strategic benefit of the acquisition remain strong.”
A spokesman in Bombardier’s headquarters in Montreal, Canada, said: “One should not draw premature conclusions about the future of the discussions. It is true that there are still closing conditions to be met to complete the transaction but we’ve been saying for the last couple of weeks that parties are working to resolve them over the fall, which is exactly what we are doing.”
He said the parties still intended to complete by October 31. In a regulatory filing on Tuesday, Spirit had said that “there can be no assurances” that conditions will be in place to go ahead with the deal.
The Bombardier deal’s conditions, “some of which remain outstanding”, include terms related to “material adverse change” to the Bombardier commercial aerospace businesses. Other conditions relate to “legal impediments” and “third-party consents”, says Spirit’s regulatory filing.
The First and deputy First minister last week called for Prime Minister Boris Johnson to set up a taskforce to protect the aerospace sector. Aircraft seat manufacturers Thompson Aero in Portadown and Collins Aerospace in Kilkeel have also cut jobs.