Saudi Arabia's PIF and Ardian Acquire Heathrow Stake

Saudi Arabia's sovereign wealth fund and a French private equity group have recently announced their joint acquisition of a 38 percent stake in Heathrow Airport, the busiest airport in Britain. This significant deal involves purchasing shares valued at more than £3.2 million ($4.1 million) from Ferrovial SE, the parent company of Heathrow Airport Holdings Ltd.

The agreement stipulates that Ferrovial will retain a 5.25 percent stake in FGP Topco, while the Public Investment Fund (PIF) and Ardian will acquire 22.6 percent and 15 percent, respectively. Post-transaction, the combined ownership of Topco shareholders and Ferrovial will amount to 10 percent of the issued share capital.

This acquisition is subject to regulatory approval and marks a change from the original plan, where PIF was slated to acquire 10 percent and Ardian 15 percent. The revised agreement now allows FGP Topco shareholders to exercise their tag-along rights and sell their shares on the same terms.

Ardian has expressed satisfaction with the revised deal, underscoring its dedication to investing in the UK. The French company, with assets totaling $166 billion globally, focuses on utilizing data and technology to promote sustainability, reduce emissions, and bolster resilience against external challenges.

The acquisition of a significant stake in Heathrow Airport by Saudi Arabia's sovereign wealth fund and Ardian marks a strategic move in the aviation industry. This partnership not only showcases international collaboration but also highlights the commitment to sustainable practices and technological advancements in airport operations.