Japan’s Mitsubishi Heavy Industries (MHI) has signed a definitive agreement to acquire the Canadair Regional Jet (CRJ) aircraft programme of Bombardier for $750m.

The transaction is expected to complete in the first half of 2020.

The deal includes a $550m cash consideration and a $200m debt assumption.

MHI will acquire all CRJ-associated assets, including manufacturing, order book, maintenance and services.

The deal will also include the type certification of the CRJ family aircraft and the acquisition of support facilities in Montréal and Toronto, as well as service centres in Bridgeport, West Virginia, and Tucson, Arizona.

MHI will also take over Bombardier’s $180m interest in the Regional Aircraft Securitization Program (RASPRO).

Bombardier will continue operating its CRJ production facility in Mirabel, Québec. The firm will also work on behalf of MHI to supply components and spare parts required for the assembly of current CRJ backlog.

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In addition, it will retain some fixed liabilities, including credit and residual value guarantees worth up to $400m. Bombardier will clear these liabilities over the coming four years.

Production of CRJ aircraft is scheduled to be complete by the end of 2020 after the completion of deliveries of the current backlog.

MHI president and CEO Seiji Izumisawa said: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience.

“This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions, including maintenance, repair and overhaul (MRO), engineering and customer support.”