Bombardier to sell regional jet business to Mitsubishi for $550 million

Canadian plane and train maker Bombardier Inc will sell its money losing regional jet business to Japan's Mitsubishi Heavy Industries Ltd for $550 million in cash, the companies said on June 25.

Bombardier has been selling some of its businesses and recently combined its aviation units to focus more on profitable business jets and passenger rail cars.

Bombardier's jet program, or the CRJ, which produces jets to connect regional centres, has no orders beyond 2020 and the company has been trying to find a solution for the division. Mitsubishi has been working on its own regional jet program, the MRJ.

As part of the deal, which is expected to close in the first half of next year, the Japanese firm will also take over a $200 million debt.

Earlier this month, there were reports that Mitsubishi Heavy was in discussions with Bombardier.