Mitsubishi Heavy Industries has signed a deal to buy Bombardier Inc.'s regional jet business for $550 million.
The deal will help Mitsubishi to accelerate development of Japan's first domestically produced passenger jet.
The deal, under which Mitsubishi Heavy will also assume liabilities amounting to approximately $200 million, provides it with Bombardier's engineering team and sales network mainly in North America, one of the biggest markets for the regional jet business.
The transaction with the Canadian manufacturer is expected to close during the first half of next year, pending regulatory approvals, Mitsubishi Heavy said, Japanese media reported.
Mitsubishi Aircraft Corp., a subsidiary of Mitsubishi Heavy, has repeatedly delayed delivery of its Mitsubishi SpaceJet since 2013 due to design modifications. It currently aims to deliver the first unit in mid-2020.
"In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents one effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family," Mitsubishi Heavy President and CEO Seiji Izumisawa said in a press release.