Bombardier Inc. has reached a preliminary deal to sell its transportation division to Paris-based Alstom SA for more than $7 billion US, the Wall Street Journal reported on Sunday.
The newspaper, citing unnamed sources familiar with the details, said the deal could be announced as early as Monday.
It also said Quebec’s pension fund manager, the Caisse de dépôt et placement, will sell its 32.5 per cent stake in Bombardier’s train unit to Alstom and buy a minority stake in the combined train company.
Bombardier has around $7 billion of debt coming due by 2025 and has been selling assets in recent years to stabilize its financial position.
Last week, the company announced the sale of its remaining commercial aviation project, a minority position in Airbus’s A220.
If the sale of its transportation division goes ahead, it would leave Bombardier with only its business-jet unit.
Bombardier Transportation employs around 1,000 people in Quebec, mainly at a factory in La Pocatière, and 3,000 people in the rest of Canada. It has plants in Thunder Bay and Kingston, and offices in Vancouver and Mississauga.
A spokesperson for Quebec’s economy minister, Pierre Fitzgibbon, said he would respond “when it’s official.”