Saudi Public Investment Fund takes 15% stake in London's Heathrow Airport

Jack Dutton

Dec 13, 2024

A Union flag flies above a hangar as a British Airways operated Airbus A747 passenger jet is moved by an aircraft tractor at Heathrow Airport, west of London on April 2, 2020, as life in Britain continues during the nationwide lockdown to combat the novel coronavirus COVID-19 pandemic. — BEN STANSALL/AFP via Getty Images

Saudi Arabia’s Public Investment Fund said late Thursday it had taken a 15% stake in FGP Topco Ltd, the company that owns London’s Heathrow Airport.

Spanish construction giant Ferrovial said earlier Thursday it had closed the sale of a 19.75% stake in the UK capital’s busiest airport for 2 billion euros ($2.1 billion) to the PIF and French investment firm Ardian.

Other shareholders of FGP Topco Ltd sold an additional 17.87% stake, taking Ardian and PIF's purchase up to 4 billion euros for 37.62%, Ferrovial said.

Ferrovial, which became a shareholder in Heathrow in 2006, is selling the entirety of its 25% stake in FGP Topco Ltd as it focuses more on its US airport investments, including in New York’s John F Kennedy Airport.

In a statement, PIF deputy governor and head of international investments Turqi Al-Nowaiser said, "The 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.”

“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,” he said.

The PIF, which manages some $925 billion in assets, added in the statement that the Heathrow investment was in line with its strategy to support important sectors and businesses as long-term partners.

In December 2023, the PIF agreed to acquire a 10% stake in FGP Topco Ltd.

Qatar’s sovereign wealth fund, the Qatar Investment Authority, has a 20% stake in the airport, making it its second-largest shareholder after the latest PIF acquisition.

Other owners include Caisse de dépôt et placement du Québec, GIC, the Australian Retirement Trust China Investment Corporation and Universities Superannuation Scheme.