Heathrow Airport has sold a 10% stake to Saudi Arabia’s Public Investment Fund (PIF), while 15% will be acquired by Ardian, a French-based private equity fund. The £2.37bn ($3bn) deal also involves parent company FGP Topco, which is owned by Spain’s Ferrovial. If approved, the transaction would end Ferrovial’s investment in the UK airport operator. Ferrovial’s stake in Heathrow fell from 56% to 25% by 2013. Qatar Investment Authority, Caisse de dépôt et placement du Québec, Singapore’s GIC, Australian Retirement Trust, China Investment Corporation and Universities Superannuation Scheme also have a stake in FGP Topco.
Heathrow Airport has faced losses in the wake of aggressive hikes in borrowing costs and lower passenger charges announced by the Civil Aviation Authority. The average charge per passenger at Heathrow is £31.57 for 2023, which will fall to £25.43 in 2024 and remain flat until the end of 2026, according to the regulator. Heathrow executives wanted charges to increase to over £40, while airlines suggested that they should not be more than £18.50.
PIF, controlled by Saudi Arabia’s prince Mohammed bin Salman Al Saud, is one of the world’s most active sovereign wealth funds, holding more than $700bn in assets due to the country’s oil wealth. The fund has recently invested in sport, such as football and golf. However, Prince Mohammed’s government has been accused of numerous human rights violations, including the 2018 killing of US-based Saudi journalist Jamal Khashoggi, an allegation that the prince has denied. He has also been given immunity in the US, while the Saudi Arabian embassy has reportedly invited him to visit the UK
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