2/23/2024
Business

Mubadala Eyes Stake in Heathrow, Joining Gulf State Investors

Abu Dhabi's sovereign wealth fund, Mubadala Investment, is reportedly in the early stages of discussions to acquire a stake in London's Heathrow Airport. This development, informed by sources close to the situation, places Mubadala alongside Saudi Arabia's Public Investment Fund (PIF) and the Qatar Investment Authority as potential key stakeholders in one of the world's most significant air travel hubs.

The investment consideration follows an approach by Ardian, a Paris-based buyout firm, inviting Mubadala to join the cadre of Gulf state investors in Heathrow. While deliberations are still underway, and no formal agreement has been finalized, the potential acquisition underscores the increasing interest of Middle Eastern sovereign wealth funds in global infrastructure assets.

The move comes on the heels of Ferrovial SE's agreement in November to divest its 25% stake in Heathrow to Saudi's PIF and Ardian for £2.37 billion. An additional 35% of Heathrow's capital, represented by other shareholders through tag-along rights, is also implicated in the transaction, necessitating their agreement for the sale to proceed.

Mubadala's potential investment in Heathrow signals a continuing strategy among Gulf states to diversify their oil-centric economies by channeling funds into durable, income-generating assets abroad. Should Mubadala finalize its investment, it would mark another significant step for Gulf state-backed entities in consolidating their presence within the global aviation infrastructure sector.

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