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French private equity group Ardian has agreed a deal to buy out three of Heathrow airport’s other shareholders, increasing its stake to more than 30 per cent as the airport prepares for a new tilt at expansion.
Ardian, already Heathrow’s largest shareholder, on Wednesday agreed to buy another 10 per cent stake in the airport from Spanish infrastructure group Ferrovial, Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and the UK’s Universities Superannuation Scheme.
The agreement will see Ardian raise its stake in Heathrow from 22.6 per cent to 32.6 per cent, and the three smaller shareholders exit the airport.
The value was not disclosed, but a person familiar with the matter said it was about £870mn.
The deal signals Ardian’s — one of Europe’s largest investment firms — faith in the growth potential in the UK’s only hub airport, as Heathrow pushes ahead with plans to build a third runway.
The government signalled its support for expansion of the airport earlier this year, in a bid to boost economic growth.
“We are delighted to be working with our fellow shareholders, the Heathrow management team and the UK authorities on our shared ambition to deliver sustainable growth of this iconic infrastructure,” said Ardian’s head of infrastructure Mathias Burghardt.
The transaction is part of Ardian’s sixth-generation European infrastructure fund, which executives expect to reach its €10bn fundraising target this year.
Ardian had become Heathrow’s largest shareholder in December, as part of a £3.3bn shake-up in ownership at the airport that also saw Saudi Arabia’s sovereign wealth fund buy a stake.
Wednesday’s further ownership changes mean that Ferrovial, Heathrow’s majority shareholder for 17 years, will finally exit the airport.
The news came after Heathrow’s management earlier on Wednesday said it would pay its owners a £250mn dividend for the first time since the pandemic, as it reported record passenger numbers.
Passenger numbers at the UK’s only hub airport increased 6 per cent to 83.9mn in 2024, and pre-tax profits rose 31 per cent to £917mn.
Chief executive Thomas Woldbye said the growth showed that expansion was essential, as the airport approached its “natural capacity limit”.
“That’s why we are looking at what we can do — short and long term — to improve capacity,” he said.
Transport secretary Heidi Alexander is also poised to approve Gatwick airport’s own expansion plan when she rules on the project this week.
Speaking on Tuesday evening, she said the government would back airport expansion, subject to environmental safeguards. “I have no intention of clipping anyone’s wings,” she said at the Airlines UK annual dinner. “I am not some sort of flight-shaming eco-warrior.”
London’s Luton, Stansted and City airports also have smaller expansion plans, but Heathrow’s Woldbye said he remained confident all the new capacity would be needed.
“A new Heathrow runway, will not be in place for the next 10 years. There’ll be lots of growth in aviation globally in the next 10 years . . . So I’m fairly confident there will be space for all of us,” he said.
Heathrow has said it will provide a detailed proposal to the government by the summer, and will aim to submit a formal planning application by the end of this parliament in 2029.
It has also outlined plans to improve and extend its existing infrastructure to allow maximum passenger numbers to increase from 85mn to 100mn, regardless of whether a third runway is built.
But Heathrow is already facing significant opposition from big airlines, which have warned that the airport should not raise its landing charges in order to fund the megaproject.
Sir Tim Clark, head of Emirates, this week told the Financial Times that Heathrow could face a legal challenge if charges rose significantly. The current landing fee is £25 per passenger on average.
Woldbye conceded that the runway, costed at £14bn in 2014, would be expensive, but said he was confident it would provide long-term value to airlines.
“It’s not going to be the cheapest runway in history. But when I look at the benefits that it will create for particularly the airlines, the opportunity to grow, I think it’s going to be reasonable,” Clark said.
