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UPDATE 2-Canada's Trudeau, tied in polls, open to Bombardier foreign investor

Published 2015-10-08, 12:40 p/m
© Reuters.  UPDATE 2-Canada's Trudeau, tied in polls, open to Bombardier foreign investor
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(Adds Mulcair comment, details)
By Allison Martell and Alastair Sharp
TORONTO, Ontario, Oct 8 (Reuters) - Canadian Liberal Party
leader Justin Trudeau, in a tight race to be the country's next
prime minister, said on Thursday his party is open to foreign
investment in Bombardier Inc BBDb.TO as long as it protects
the country's interests.
Trudeau's position contrasted with the opposition New
Democrats, running third in polls, which when asked about
possible Chinese investment in Bombardier said Ottawa should
protect key sectors like aerospace.
The embattled Canadian plane and train manufacturer, which
held unsuccessful talks to sell a majority stake in its CSeries
jetliner program to Airbus AIR.PA also previously approached
an unnamed Chinese company. ID:nL1N12715F
Those discussions ended three to four weeks ago, according
to a source familiar with the situation. ID:nL1N1262WG
Both party leaders spoke after they were asked whether a
Liberal or NDP government would allow a Chinese company to buy a
majority stake in Bombardier's CSeries project. Polls show the
ruling Conservatives and Liberals virtually tied in the run up
to an Oct. 19 election.
"We are always open to global investment in a way that
respects and defends Canadian interests, and that is the
approach we will take on foreign trade and foreign investments,"
Trudeau told reporters during a campaign stop.
Trudeau's comments followed a similar message from the
provincial government in Bombardier's home province of Quebec.
Officials signaled they are open to foreign investment after
The collapse of the Airbus talks were the latest blow to
Bombardier, which is saddled with debt as the CSeries program
limps toward commercial service in 2016, years late and billions
of dollars over budget. The company has been struggling to sell
the narrow-body jet and has not announced a new firm order in
more than a year.
NDP leader Thomas Mulcair noted Prime Minister Stephen
Harper had allowed China's state-owned CNOOC Ltd. 0883.HK to
buy Canadian producer Nexen Energy.
"We've sold out control of our oil and gas sector to China.
I'll never allow that," he told reporters.
Asked whether he would block any Chinese investment in
Bombardier if the NDP became government, Mulcair did not rule it
out, saying the law requires Canada assess if there is net
benefit to the country.
"The government has to also make sure that key sectors of
our economy like aerospace, like the auto sector, are not sold
off, are not imperiled to the point where they have to be sold
off," he said.
Quebec's Economy Minister Jacques Daoust on Wednesday
signaled that a majority stake held by overseas interests would
not be unusual and stressed that the most important issue for
him was that the company's head office stay in Montreal.
Any deal involving the sale of the CSeries to Chinese buyers
would likely trigger a federal government review.
A spokesman for the federal department responsible for
foreign takeover reviews declined to comment.

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