Bombardier says no delay to Alstom rail deal due to COVID-19

FILE PHOTO: Bombardier's logo is seen on the building of the company's service centre at Biggin Hill, Britain March 5, 2018. REUTERS/Peter Nicholls

(Reuters) - Canada's business jet maker Bombardier BBDb.TO said on Wednesday it does not expect the COVID-19 pandemic to delay the sale of its rail division to France's Alstom ALSO.PA.

The statement comes a day after the French train maker said it was sticking to the terms of its previously agreed deal to buy the unit for up to 6.2 billion euros ($6.7 billion), despite a hit to its earnings from the health crisis.

“We continue to make progress working with Alstom to complete the sale of our Transportation business. And, we currently do not expect any delays to the original timeline as a result of the COVID-19 pandemic,” a Bombardier spokeswoman said in a statement.

Alstom expects to close its deal with Bombardier, which is subject to regulatory clearance, in the first half of 2021.

Reporting by Sanjana Shivdas in Bengaluru; Editing by Shailesh Kuber