Ferrovial, the owner of Heathrow Airport, announced the sale of its 25% stake in the airport's parent company for £2.4 billion.
The buyers are Saudi Arabia’s Public Investment Fund (PIF), acquiring 10%, and Ardian, a French private equity group, purchasing 15%.
This sale concludes Ferrovial's involvement with Heathrow, which started in 2006 with a hostile takeover of BAA, the UK airports operator.
Ferrovial's decision follows frustrations with regulatory challenges and Heathrow's financial struggles, including losses and high debt servicing costs due to increased interest rates.
Ferrovial Airports CEO Luke Bugeja highlighted the company's transformative role in Heathrow, including a £12 billion investment and the construction of Terminal 2.
The PIF, with over US$700 billion in assets, and Ardian, are known for infrastructure investments.
The deal awaits regulatory approval and compliance with the rights of Heathrow’s other owners, including the Qatar Investment Authority and Singapore’s GIC sovereign wealth fund.