TORONTO (AP) -- Canada's Bombardier has signed a preliminary agreement with a Russian state corporation for the purchase of as many as 100 Q400 NextGen aircraft in a deal that could be worth up to $3.39 billion.
The Montreal-based plane and train manufacturer said Wednesday that the deal with Rostekhnologii, a state corporation controlled by the Russian Federation, also includes the possibility of setting up a Q400 NextGen final assembly line in Russia to complement its Toronto operations.
Bombardier says the manufacturing facility in Russia is a key commercial requirement for the deal and would be managed by a joint venture.
The sales agreement is expected to be finalized in 2014.
There are currently more than 120 Bombardier commercial aircraft in service in Russia and other former Soviet republics.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.