A Saudi-French agreement to acquire 25% of Heathrow Airport in England

The Saudi Public Investment Fund and French company Ardian acquired a 25% stake in London's Heathrow International Airport for £2.4 billion, according to Al Arabiya.

Today, Wednesday, November 29, 2023, the Public Investment Fund announced that it has entered into an agreement with Ferrovial SA to purchase a 10% stake in FGB Topco, the holding company for Heathrow Airport (Heathrow Airport Holding Company Limited).

Under the agreement, the Public Investment Fund will acquire a 10% stake in FGB Topco, while Ardian will acquire a 15% stake in FGB Topco, through the infrastructure funds it manages, as both the Public Investment Fund and Ardian will invest separately. 

Specific conditions

The deal is subject to specific conditions that include priority rights to purchase and rights to participate in the sale that can be exercised by the current shareholders of FGB Topco, in accordance with the provisions of the shareholders agreement, and in line with the company’s system and procedures, in addition to other approvals from the relevant and concerned parties.

The Public Investment Fund is looking forward to the opportunity to invest in Heathrow Airport, which is considered one of the most important airports in the world as it enjoys a strategic and global status.

The Public Investment Fund’s investment in Heathrow Airport is in line with its strategy to support sectors and companies through long-term investments.

Heathrow Airport is one of the busiest airports in the world, as it connects the United Kingdom to all its trading partners around the world to support and stimulate economic growth globally.

Heathrow Airport

Heathrow Airport is located in the Hillingdon area, west of the British capital, London. The airport was established and opened in 1929 under the name “West Great Airport”. It was spread over an agricultural area, and its name was later changed to Heathrow Airport, as it is known now.

According to the British News website, the aim of establishing the airport was to serve the British Royal Air Force, which used it in World War II. After the end of the war, the airport was allocated for civilian use and was gradually expanded until its total area reached about 1,200 hectares.

Heathrow Airport features

Although London has 5 other airports, Heathrow Airport is the largest and most famous airport, and is classified as one of the main airports in Europe for traveling across countries, as most of the major airlines in the world pass through it on direct flights from almost all major cities, and 90 international airlines use the airport. Its aircraft fly from it to 215 destinations in 84 countries in the world, which makes it one of the busiest airports. In January 2023, Heathrow Airport ranked second on the list of the busiest international airports around the world with 3.5 million seats.

One of the advantages of Heathrow Airport is that it is a vital commercial airport for transporting goods, in addition to being a civil airport. According to “British News”, the airport is one of the largest air ports for transporting goods in the world, with about 1.5 million tons of cargo carried by planes departing from the airport annually, carrying goods by air. It has 15 cargo platforms, and contains more than 90 remote runways. The airport includes entertainment venues, hotels, and markets for purchase, and is served with the best modern technologies. It is considered the most expensive airport in Britain in terms of services and flights, and it does not receive low-cost, economical company aircraft.