Airbus and Bombardier’s C Series Partnership

Levy & Salomão Advogados, Cleary Gottlieb Steen & Hamilton and Covington & Burling advised on the deal

Airbus SE (EPA: AIR) and Bombardier Inc. (TSX: BBD.B) are to become partners on the C Series aircraft programme. The transaction secured the approval from Brazilian Antitrust Authority (CADE).

The agreement brings together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family, positioning both partners to fully unlock the value of the C Series platform and create significant new value for customers, suppliers, employees and shareholders.

Under the agreement, Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a 50.01% interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 31% and 19% respectively.

CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama, U.S. This strengthening of the programme and global cooperation will have positive effects on Québec and Canadian aerospace operations.

The single aisle market is a key growth driver, representing 70% of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the C Series is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats). The world class sales, marketing and support networks that Airbus brings into the venture are expected to strengthen and accelerate the C Series’ commercial momentum. Additionally, Airbus’ supply chain expertise is expected to generate significant C Series production cost savings.

Airbus is strongly committed to Canada and its aerospace sector with Canadian suppliers extending their access to Airbus’ global supply chain. This new C Series partnership is set to secure jobs in Canada for many years to come.

In Brazil, Levy & Salomão Advogados advised Airbus and Bombardier obtaining the approval of the transaction from CADE (Brazilian Antitrust Authority) with a team including Ana Paula Martinez, Marcos Drummond Malvar and Lucas Griebeler da Motta.

Cleary Gottlieb Steen & Hamilton advised Airbus on the deal with Brian Byrne (Picture), Daniel Culley, Dirk Schroeder, Mark Leddy, Frederic de Bure, Tilman Kuhn, Andrew Kline, Alexis Lazda, Laurence Bary, Sarah Ait Benali, Cristina Caroppo and Tobias Pesch.

Covington & Burling advised Bombardier with James O’Connell, Johan Ysewyn, Andrea Zulli, Megan Gerking and Jérôme de Ponsay.

Involved fees earner: Ana Paula Martinez – Levy & Salomão; Marcos Drummond Malvar – Levy & Salomão; Lucas Griebeler da Motta – Levy & Salomão; James O’Connell – Covington & Burling; Johan Ysewyn – Covington & Burling; Andrea Zulli – Covington & Burling; Megan Gerking – Covington & Burling; Jérôme de Ponsay – Covington & Burling; Brian Byrne – Cleary Gottlieb Steen & Hamilton; Daniel Culley – Cleary Gottlieb Steen & Hamilton; Dirk Schroeder – Cleary Gottlieb Steen & Hamilton; Mark Leddy – Cleary Gottlieb Steen & Hamilton; Frédéric De Bure – Cleary Gottlieb Steen & Hamilton; Tilman Kuhn – Cleary Gottlieb Steen & Hamilton; Andrew Kline – Cleary Gottlieb Steen & Hamilton; Alexis Lazda – Cleary Gottlieb Steen & Hamilton; Sarah Aït Benali – Cleary Gottlieb Steen & Hamilton; Cristina Caroppo – Cleary Gottlieb Steen & Hamilton; Tobias Pesch – Cleary Gottlieb Steen & Hamilton;

Law Firms: Levy & Salomão; Covington & Burling; Cleary Gottlieb Steen & Hamilton;

Clients: Bombardier; Airbus Group;

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Author: Ambrogio Visconti.