Canadian company Bombardier has agreed to divest its remaining stake in the Airbus Canada, which signals its exit from commercial aviation.

This deal will see Airbus and the Government of Québec respectively hold 75% and 25% in Airbus Canada, which is responsible for the A220 programme.

Earlier this week, the two entities were in advanced talks for the acquisition.

Under this transaction, Airbus also acquired Bombardier-owned A220 and A330 work package production capabilities in Saint-Laurent, Québec, through its wholly owned subsidiary Stelia Aerospace.

Airbus chief executive officer Guillaume Faury said: “This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore, it extends our trustful partnership with the Government of Québec. This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry.

“I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”

The deal also includes a provision for Airbus to redeem the remaining stake from the government in 2026, three years later than before.

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Airbus will pay a consideration of $591m to Bombardier, $531m of which has been paid at the time of closing while the remaining $60m will be paid during 2020-2021.

More than 3,300 people will be employed by Airbus in Québec.

Airbus acquired a majority stake in the A220 programme in July 2018.