In a surprising turn of events, Saudi Arabia may soon hold majority control over London Heathrow Airport (LHR), the United Kingdom’s largest airport. This development comes as Ferrovial, the Spanish infrastructure company that has been the primary owner of LHR for nearly two decades, confirmed the sale of its stake in November.

A Shift in Ownership
Ferrovial, a Madrid-based infrastructure giant, has been the majority stakeholder of LHR for almost 20 years. However, the company confirmed the sale of its stake to Saudi Arabia’s Public Investment Fund (PIF) and Ardian, a Paris-based investment company, for nearly $3 million on November 29. This move marks a significant shift in the ownership structure of one of the world’s busiest airports.

The sale agreement involves the PIF acquiring a 10% stake, while Ardian will take over a 15% stake. This transaction, coupled with the potential sale of stakes by other shareholders, could result in Saudi Arabia gaining majority control over LHR.

The Implications
The potential shift in majority control to Saudi Arabia could have far-reaching implications for the global aviation industry. It could influence the strategic direction of LHR, impact its operational decisions, and potentially reshape the dynamics of international air travel.

FAQ
What is a majority stake?
A majority stake refers to ownership of more than 50% of a company’s shares. This gives the majority stakeholder the power to influence the company’s decisions.

Who is the current majority owner of London Heathrow Airport?
The current majority owner of London Heathrow Airport is Ferrovial, a Spanish infrastructure company.

Who are the potential new majority stakeholders of London Heathrow Airport?
Saudi Arabia’s Public Investment Fund and Ardian, a Paris-based investment company, are the potential new majority stakeholders of London Heathrow Airport.

What is the Public Investment Fund (PIF)?
The Public Investment Fund (PIF) is Saudi Arabia’s sovereign wealth fund. It is one of the largest sovereign wealth funds in the world and is used to invest the country’s reserves.

What is Ardian?
Ardian is a world-leading private investment house with assets of $110bn managed or advised in Europe, the Americas, and Asia.

What could be the implications of this change in ownership?
The change in ownership could influence the strategic direction of London Heathrow Airport, impact its operational decisions, and potentially reshape the dynamics of international air travel.