Saudi Arabia is set to acquire a 10% share in Heathrow Airport following the decision by Spanish infrastructure giant Ferrovial to sell its 25% stake in Europe’s most frequented airport.
Ferrovial, previously the largest shareholder of the transport hub, has agreed to a £2.4 billion transaction, divesting its remaining shares to the Saudi Public Investment Fund (PIF) and Ardian, a Paris-based firm, which will obtain a 15% interest.
This transaction concludes Heathrow’s extensive relationship with the Spanish company, which started amid controversy in 2006 when Ferrovial successfully undertook a hostile takeover of BAA, the UK’s airport operator.
The sale, initially proposed in August of the previous year, follows Heathrow’s announcement of recording its highest September passenger count ever, surpassing seven million and marking the first instance of exceeding pre-pandemic traffic levels.
The PIF of Saudi Arabia has emerged as a significant global investment entity, aligning with Crown Prince Mohammed bin Salman’s strategy to diversify the Gulf nation’s economy beyond oil. The fund is targeting to manage assets worth $2 trillion (£1.6 trillion) by 2030.
Luke Bugeja, who leads Ferrovial’s airport division, commented, “For the past 17 years, we have played a pivotal role in Heathrow’s evolution, in collaboration with our co-shareholders, achieving notable milestones throughout our tenure as an investor. We take great pride in having transformed Heathrow into one of the world’s most interconnected airports and the busiest in Europe.”
