(Reuters) – Canada’s Bombardier Inc is in talks to sell its business-jet unit to U.S. maker of Cessna jets, Textron Inc, the Wall Street Journal reported, citing people familiar with the matter.
The move will help the struggling Canadian train and plane maker to pare billions of dollars in debt, the report said.
Bombardier’s shares have plunged more than 30% so far this year. On Jan. 16, company flagged a 2019 profit warning, citing problematic rail contracts, as well as warned of a potential write down in the value of a plane partnership with Europe’s planemaker Airbus.
Bombardier declined comment on the WSJ report, but a source familiar with the company’s thinking told Reuters it was holding talks over both rail and aviation assets to keep all its options open.
Acquiring Bombardier’s business jet unit would add the Global series of large-cabin aircraft to Textron’s portfolio, which mostly makes small- and medium-sized corporate planes.
Analysts have said that a deal would expand the U.S. company’s aircraft offerings, allowing it to offer a complete family of jets to a wider range of customers.
Textron declined to comment.
Shares of Textron rose more than 9%, while those of Bombardier’s were up over 10%.
(Reporting by Ankit Ajmera in Bengaluru and Allison Lampert in Montreal; Editing by Shinjini Ganguli and Vinay Dwivedi)