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Bombardier Belfast could attract bids from AVIC, COMAC, Spirit; talk of Melrose bid downplayed - reports
04 MAY 2019
Bombardier’s [TSX: BBD.B] Belfast, UK-based operations could attract a bid from Aviation Industry Corporation of China (AVIC), The Irish Times reported. The newspaper cited aerospace sector sources who said AVIC, which has had a commercial relationship with Bombardier since 2007, is considered a “credible” potential buyer for the Belfast business.
Bombardier, a Canadian engineering company, announced on 2 May that it is planning to sell its aerostructures operations in Belfast and Morocco.
Avic acquired another Northern Ireland-based aerospace components supplier, Thompson Aero Seating, in December 2016, the item noted.
The report went on to name Commercial Aircraft Corporation of China (COMAC) as another potential bidder for Bombardier’s Belfast operations, but did not attribute the information to a source.
Separately, a report in The Times said GKN, an aerospace and automotive parts manufacturer owned by Melrose Industries [LON:MRO], has been tipped as a potential buyer for Bombardier’s Belfast and Morocco business.
However, the report went on to cite one Melrose source who suggested on Friday, 3 May that the company is not interested in buying Bombardier’s Belfast operations.
Spirit Aerosystems [NYSE:SPR], a Wichita, Kansas-based aircraft manufacturer, is also considered to be a potential bidder for Bombardier Belfast, the item continued.
The report cited an analyst who said this week that Spirit was looking to make acquisitions to lessen its dependence on contracts from Boeing [NYSE:BA].
Analysts cited by a Financial Times report, estimated that Bombardier’s Belfast business could sell for up to USD 1bn (EUR 892m).
The FT report also named GKN and Spirit as potential buyers for Bombardier’s Belfast operations. Spirit said it does not comment on market speculation, while Melrose also refused to comment, according to the newspaper.
The item also mentioned the Spanish aerospace company Aernnova, backed by the buyout group TowerBrook, and Berwyn, Pennsylvania-based aerospace group Triumph [NYSE:TGI] as potential bidders for Bombardier’s Belfast arm.