Saudi and French Funds to Acquire 38% Stake in Heathrow Airport

MADRID, Spain — Saudi Arabia’s sovereign wealth fund and a French private equity group are set to acquire a 38-percent stake in Heathrow, according to an announcement from the airport’s largest shareholder on Friday.

Heathrow, one of the busiest airports globally, is owned by the consortium FGP Topco Limited, with Spanish infrastructure giant Ferrovial holding a 25-percent stake.

In November, Ferrovial revealed plans to sell its stake, with Saudi Arabia’s Public Investment Fund (PIF) acquiring 10 percent and French private equity group Ardian taking 15 percent. However, the deal faced obstacles from small FGP Topco shareholders invoking “tag-along rights,” demanding the opportunity to sell their shares under the same conditions.

“Ardian and PIF have made a revised offer to acquire shares representing 37.62 percent of FGP Topco’s share capital for £3.3 billion ($4.1 billion),” Ferrovial stated, noting its acceptance of the bid. Following further negotiations, Ardian will acquire approximately 22.6 percent of the shares, while PIF will take 15 percent.

Ferrovial, specializing in transport infrastructure management, operates a diverse portfolio of global assets, including airport interests in Turkey and New York. Heathrow, initially a core asset, has seen Ferrovial’s stake decrease from 56 percent, acquired during a 2006 takeover, to the current holding.

Led by Rafael Del Pino, Spain’s third-richest individual with a $6.1 billion fortune as valued by Forbes, Ferrovial initially aimed to sell its entire stake in FGP Topco. However, the intervention by smaller shareholders led to a strategic shift, with Ferrovial retaining 5.25 percent of its holding.

The deal awaits regulatory approval, Ferrovial confirmed. In addition to its Heathrow stake, Ferrovial owns a 50-percent stake in three other UK airports—Aberdeen, Glasgow, and Southampton—alongside 60 percent of Turkey’s Dalaman Airport and a 49-percent stake in JFK Airport’s new Terminal 1 in New York.

Last year, Ferrovial sparked controversy by moving its headquarters to the Netherlands, citing benefits like access to cheaper credit and increased attractiveness to investors ahead of a planned US stock listing.