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Ayda Salem

PIF Finalizes Purchase of 15% Interest in Heathrow Airport

PIF Acquires Stake in Heathrow: The Saudi Public Investment Fund (PIF) has completed the acquisition of a 15% stake in FGP TopCo, the holding company of Heathrow Airport Holdings Ltd., as part of its strategy to invest in key global infrastructure assets.

Riyadh, December 13, 2024 – The Saudi Public Investment Fund (PIF) has officially completed the acquisition of a 15% stake in FGP TopCo, the holding company behind Heathrow Airport Holdings Ltd., from Ferrovial SE and a group of other shareholders. This strategic investment further underscores PIF’s growing presence in critical global infrastructure assets, particularly those central to facilitating international trade, travel, and economic growth. The acquisition, as confirmed by a press release from the Fund, represents another significant step in Saudi Arabia’s commitment to expanding its international portfolio, focusing on high-value and long-term assets.


At the same time, Ardian, a leading global private investment house, secured a 22.6% stake in FGP TopCo from the same group of sellers, further reinforcing the strategic nature of the investment. The deal positions both entities as key partners in the management and development of Heathrow, one of the world’s busiest and most iconic airports.


PIF’s Deputy Governor and Head of International Investments, Turqi Al-Nowaiser, commented on the acquisition, expressing the Fund's enthusiasm about investing in Heathrow, a critical infrastructure asset for the United Kingdom and a major global aviation hub. "PIF is pleased to be investing in Heathrow Airport, a vital U.K. asset and a world-class airport,” Al-Nowaiser said. “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.”


The acquisition aligns with PIF’s broader strategy to engage in high-impact sectors, particularly those that support long-term sustainability goals. As part of Saudi Arabia’s Vision 2030, PIF has been actively seeking opportunities to diversify its investments, ensuring that the Kingdom capitalizes on growth industries worldwide. Heathrow’s strategic importance as a major international transit point makes it an essential addition to PIF’s growing portfolio of global assets.


The investment is particularly timely, as the aviation industry faces increasing pressure to adopt sustainable practices in response to the global push toward net-zero emissions. Heathrow, with its position as Europe’s busiest airport and a key player in the global air transport network, is well-placed to continue its role as a global aviation leader. PIF’s involvement will allow it to support Heathrow in its efforts to enhance operational efficiencies and its transition to more sustainable practices, including carbon reduction and environmental sustainability initiatives.


This acquisition is in line with the broader objectives set forth by PIF, which continues to make strategic investments that offer both economic returns and positive societal impacts. PIF has previously expressed its commitment to ensuring that its investments contribute to the long-term development of critical infrastructure, which is crucial for economic diversification and growth.


Ferrovial SE, the Spanish multinational construction and infrastructure group that has been a major shareholder in Heathrow, also issued a statement today confirming the sale of its stake in FGP TopCo. The deal marks another step in Ferrovial’s evolving strategy and follows a series of earlier announcements related to its investment positions in the airport. These include statements issued on November 28, 2023, January 16, 2024, and June 14, 2024, which outlined the company’s shifting focus on other strategic priorities within its broader portfolio.


PIF’s acquisition is a landmark move for the Fund, which has been increasingly active in expanding its footprint in key sectors such as infrastructure, energy, and technology. The deal is expected to significantly enhance PIF’s position in the global infrastructure market, with a particular focus on supporting projects that align with sustainable development and the future-proofing of critical assets.


As PIF continues to invest in globally significant assets, this acquisition further demonstrates Saudi Arabia’s ongoing efforts to diversify its economic base, create jobs, and foster international partnerships that will contribute to its long-term economic prosperity. The investment in Heathrow is poised to play a key role in enhancing both the Kingdom’s economic stature and its global network of strategic infrastructure assets.

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