Saudi Arabia’s sovereign wealth fund, PIF, secures a 10% stake in Heathrow for £1bn, marking the exit of Spanish company Ferrovial after 17 years. Ferrovial sells its entire 25% stake in Heathrow’s parent company, FGP Topco, for £2.4bn. If regulatory approval is granted, this move concludes Ferrovial’s investment in Heathrow, which began at 56% in 2006 and dwindled to 25% by 2013. PIF joins French private equity group Ardian in the acquisition. Other investors in Heathrow’s parent company include Qatar Investment Authority, Caisse de dépôt et placement du Québec, Singapore’s GIC sovereign wealth fund, and more.
Ferrovial expresses continued commitment to the UK and other airport investments, holding stakes in Aberdeen, Glasgow, and Southampton airports, as well as terminals in New York and Turkey. Despite Heathrow’s passenger numbers tripling in 2022, the airport reports an adjusted loss of £684m. In September, the competition regulator rejected Heathrow’s appeal against a ruling to cut passenger charges by almost a fifth in 2023.
Luke Bugeja, the head of Ferrovial’s airports business, said, ”Over the last 17 years, we have been contributing to Heathrow’s transformation, achieving some excellent milestones throughout our long-term role as an investor. We are very pleased to have made Heathrow one of the world’s most connected airports and the busiest airport in Europe”.
