Saudi investors stake their claim in Heathrow, alongside French private equity firm Ardian
December 16, 2024
With a 22.6% stake, Ardian has become London Heathrow’s largest shareholder, while Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has secured a 15% stake in the air transport hub.
The combined 37.6% stake in London Heathrow from Ferrovial and certain other FGP shareholders was confirmed in a deal on 12 December, which is reported to be worth a total of £3.26 billion.
A valuable asset
Turqi Al-Nowaider, deputy governor and head of international investments for PIF, described London Heathrow as a “vital UK asset and a world-class airport,” as he said the investment is in line with PIF’s strategy to support sectors and businesses as long-erm patterns as part of its global portfolio of assets.
“We believe in the importance of infrastructure as a key sector in supporting the transition to net zero. Heathrow acts as a crucial gateway to the world and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.”
Meanwhile, Ardian’s acquisition successfully builds on the private investment firm’s 17-year track record of successful infrastructure investments in the UK, according to Juan Angoitia Grijalba, co-head of infrastructure and senior managing director of Ardian.
“Our investment will draw on Ardian’s expertise in aviation, including previous investments in London Luton Airport and stakes in six airports in Italy,” said Grijalba.
“It is another example of how we are delivering Ardian’s strategy of investing in significant infrastructure in our core markets.”
He was joined by Ardian’s executive vice president and head of infrastructure, Mathias Burghardt, who reiterated that the investment will see Ardian supporting the airport’s management team in “enabling growth” and “supporting the transition to net zero.”
The UK’s chancellor of the exchequer, the Rt. Hon. Rachel Reeves, underlined the UK government’s support for the deal, as she said: “Our number one mission is to deliver economic growth in every part of the UK to improve living standards. Attracting investment to our shores supports that goal.
“It’s also a strong vote of confidence in the UK and comes on top of the £63 billion of investment secured from international investors earlier this year, showing that Britain is back in business.”
Newcastle also goes up for sale
The news of the investment in Heathrow was swiftly followed by an announcement that Saudi Arabia’s PIF are also the favourite to bid for a stake in Newcastle Airport in the UK, which is being put for sale by its current owners in a deal that could fetch as much as £1 billion.
