PIF, Ardian close acquisition of 37.6% stake in Heathrow

Saudia Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), and French private equity firm Ardian said on Friday that they have formally closed the acquisition of a 37.6 per cent stake in London Heathrow Airport from Ferrovial and certain other FGP TopCo shareholders.

Under the new agreement, Ardian and PIF will acquire 22.6 per cent and 15 per cent, respectively, of FGP Topco for a total of $4.12bn (GBP3.26bn).

“PIF is pleased to be investing in Heathrow Airport, a vital UK asset and a world-class airport. We believe in the importance of infrastructure as a key sector in supporting the transition to net zero,” said Turqi Al-Nowaiser, deputy governor and head of International Investments.

“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.”

With $925bn in assets under management, the PIF has emerged as a significant global investment powerhouse, driven by the vision of Prime Minister and Crown Prince Mohammed bin Salman, who is spearheading the kingdom’s ambitious Vision 2030 economic diversification agenda.

PIF stated that its investment in Heathrow Airport aligns with the fund’s strategy of supporting key sectors and businesses as long-term partners, thereby expanding its global portfolio of assets.

With a portfolio of investments ranging from date farms to multinational conglomerates, PIF’s sources of funding include retained earnings from investments, capital injections from the government, government assets transferred to the fund, and loans and debt instruments.

Abu Dhabi’s Mubadala Investment Company is reportedly also considering an investment in Heathrow, which could potentially lead to it joining the PIF and the Qatar Investment Authority as prominent shareholders in the London hub.

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