Saudi Arabia's PIF Acquires 10% Stake in London Heathrow Airport

The acquisition, valued at £1 billion, involves purchasing shares from the Spanish company Ferrovial.

The deal aligns with the long-term economic diversification strategy led by Saudi Crown Prince Mohammed bin Salman.

PIF aims to reach a valuation of $2 trillion in assets by 2030, positioning itself as the world's largest wealth fund, currently held by Norway's oil fund.

Ferrovial's decision to sell its shares in Heathrow Airport marks a significant financial gain for the Spanish company, increasing its overall value to $3 billion.

The sale includes Ferrovial's remaining 15% stake in FGP, the parent company of Heathrow Airport, which was acquired by French private equity firm Ardian.

Upon regulatory approval, Ferrovial will no longer hold any stake in one of the busiest airports globally.

London Heathrow Airport has been a key investment for various entities. Qatar Investment Organization is a major shareholder with a 20% stake, while other investors include the Quebec Deposit and Investment Fund (CDPCO), Singapore Investment Company, Australia Pension Fund, China Investment Company, and the British Universities Pension Fund.

In a statement, PIF expressed its satisfaction with the investment, stating, "PIF is pleased to be investing in Heathrow, a world-class airport, which acts as a key gateway to the world.

PIF’s investment in Heathrow is in line with its strategy to support the business as a long-term partner."

The move signifies Saudi Arabia's active participation in global economic ventures, leveraging its wealth fund to secure strategic assets and partnerships.

As regulators assess and approve the transactions, the acquisition reinforces PIF's role as a major player in shaping the future landscape of international investments.