Mitsubishi Heavy Industries is buying Bombardier's regional jet program for $550 million, along with liabilities of around $200 million.

Production of the CRJ aircraft will end in 2020 after backlog deliveries are complete. Mitsubishi (MHI) said the acquisition will expand the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family. Bombardier said the sale would allow it to focus on its rail transportation and aircraft leasing lines of business.

MHI's SpaceJet production could expand to North America as a result of the deal. Credit: MHIUnder the agreement, MHI will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal and Toronto, and its service centers located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.

The twin-engine CRJ includes configurations that range from 50 to 104 passengers and that can fly between 1,000 and 1,650 nautical miles.

Analysts have speculated that MHI may be less interested in the aircraft than in the global structure that supports it, including engineering and certification expertise. MHI might also see a chance to begin producing its own aircraft in Canada, placing it close to U.S. regional airlines that are among its top sales prospects.

Seiji Izumisawa, president & CEO of MHI, said in a statement that the purchase gives it a "complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”

The Mitsubishi SpaceJet, formerly known as the Mitsubishi Regional Jet, is a twin-engine regional jet aircraft seating 70 to 90 passengers. It is manufactured by Mitsubishi Aircraft Corp., a partnership between MHI and Toyota Motor Corp. with design assistance from Subaru Corp., itself an aerospace manufacturer.

The CRJ production facility in Mirabel, Québec, will remain with Bombardier, which will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI.

The transaction is expected to close during the first half of 2020 and is subject to regulatory approvals and customary closing conditions.