Saudi's sovereign wealth fund PIF secures 15% stake in LHR

While French private equity firm, Ardian has become London Heathrow's largest shareholder with a 22.6% stake.

The combined 37.6% stake in LHR from Ferrovial and certain other FGP shareholders was confirmed in a deal on 12 December, which is reported to be worth a total of £3.26 billion.

Turqi Al-Nowaider, deputy governor and head of international investments for PIF, described London Heathrow as a “vital UK asset and a world-class airport,” as he said the investment  is in line with PIF’s strategy to support sectors and businesses as long-erm patterns as part of its global portfolio of assets.

“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 UK’s chancellor of the exchequer, the Rt. Hon. Rachel Reeves, underlined the UK government’s support for the deal, as she said: “Our number one mission is to deliver economic growth in every part of the UK to improve living standards. Attracting investment to our shores supports that goal.

“It’s also a strong vote of confidence in the UK and comes on top of the £63 billion of investment secured from international investors earlier this year, showing that Britain is back in business.”

The news of the investment in Heathrow was followed by an announcement that Saudi Arabia’s PIF are also the favourite to bid for a stake in Newcastle Airport in the UK, which is being put for sale by its current owners in a deal that could fetch as much as £1 billion.