Saudi Arabia’s Public Investment Fund (PIF) and French private equity firm Ardian confirmed on Friday the completion of their acquisition of a 37.6% stake in London Heathrow Airport from Ferrovial and other shareholders of FGP TopCo.
Under the agreement, Ardian and PIF will acquire 22.6% and 15% stakes respectively in FGP TopCo, with a combined value of $4.12bn (GBP3.26bn). PIF’s deputy governor, Turqi Al-Nowaiser, expressed the fund’s pleasure in investing in Heathrow, recognising the airport’s importance to the UK and its role in the global aviation industry. He also highlighted the significance of infrastructure investments in supporting the transition to net-zero.
PIF, with assets under management totalling $925bn, has become a key player in global investments, driven by the vision of Prime Minister and Crown Prince Mohammed bin Salman as part of the kingdom’s Vision 2030 initiative. The fund’s investment strategy focuses on long-term partnerships in key sectors, enhancing its international asset portfolio.
PIF’s investments range from date farms to multinational corporations, funded through retained earnings, government capital, assets transferred to the fund, and loans. Reports suggest that Abu Dhabi’s Mubadala Investment Company is also considering an investment in Heathrow, which could result in it joining PIF and the Qatar Investment Authority as significant stakeholders in the airport.
