ALBAWABA – Saudi Arabia’s PIF will buy a 10 percent stake in London Heathrow Airport from Spain’s Ferrovial as part of a shareholder reshuffle, Bloomberg reported Wednesday.
Accordingly, the Saudi Public Investment Fund (PIF) will become a partial owner in one of Europe’s businest airports, alongside the Qatar Investment Authority.
Ferrovial is selling down their 25 percent holding, with the remaining 15 percent to be bought by Paris-based private equity firm Ardian, according to a statement published late Tuesday.
The Spanish infrastructure firm’s $3 billion deal represents an opportunity to unload a holding it had previously valued at zero, Bloomberg confirmed.
Saudi Arabia’s PIF has become a major global investing force as the Kingdom’s de-facto leader, Crown Prince Mohammed bin Salman, reshapes the oil-rich country with his own brand of state capitalism.
Saudi Arabia’s PIF has become a major global investing force - Shutterstock
The fund, part of a consortium that bought Vodafone Group Plc’s towers unit in 2022, aims to reach $2 trillion in assets by 2030. That would make PIF the world’s biggest wealth fund, a title now held by Norway’s oil fund.
Heathrow is a major destination for flights from the Gulf region, with Emirates, Qatar Airways and Etihad Airways PJSC all serving the hub with multiple flights a day.
Saudi Arabia is in the process of expanding its airline industry, seeking to attract more business and tourism to the country. It recently created Riyadh Air, a new airline that will operate in addition to existing flag carrier Saudia.
