WATERLOO REGION - Officials in Waterloo Region don't expect the pending sale of Bombardier's rail division to have an impact on the Ion light rail system.

Bombardier built the 14 light rail vehicles for the region's system. Delays in delivering those trains postponed their launch for two years.

Saddled with debt, Bombardier announced Monday that it has agreed to sell its rail division to French firm Alstom, in a deal valued at more than $8 billion. The deal is not expected to close until the first half of 2021, pending regulatory approvals.

"We should see very little impact," regional transportation commissioner Thomas Schmidt said last week, prior to the official confirmation of sale rumours that had been swirling for several weeks.

Bombardier will focus solely on business aviation, having sold off its commercial aviation and other transportation assets. Its corporate headquarters is in Montreal, although Bombardier Transportation, the rail division, is based in Berlin.

In an email Tuesday, a Bombardier spokesperson said the announcement has no impact on Waterloo Region's LRT trains.

Bombardier continues to make modifications to Ion vehicles, and has ongoing warranty responsibilities. Bombardier also provides parts, although Schmidt said most originate with other manufacturers and could likely be sourced elsewhere if necessary.

The light rail vehicle used by Ion is commonly used in Europe, Schmidt said, adding that he'd expect that a new owner would want to keep those vehicles operating.

The region's contract does provide for the purchase of another 14 light rail vehicles in the future; terms would need to be negotiated if that was to occur.

"There's not a commitment on our part to purchase them," Schmidt said. Ion's planned second phase would extend service from Kitchener through Cambridge.

The region is also pursuing costs from Bombardier relating to delivery delays, but that issue hasn't yet been resolved.

The proposed sale would see pension fund manager Caisse de d�p�t et placement du Qu�bec become Alstom's largest shareholder; it currently holds a roughly one-third share in Bombardier's rail division. Alstom is expected to establish its headquarters for all operations in the Americas in Montreal.

bdavis@therecord.com

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