China sovereign fund buys 10% of London airport

Sovereign wealth fund China Investment Corporation (CIC) acquired a 10% holding in London’s Heathrow airport from Spanish transport investor Ferrovial (FER.MCE, UFG.FRA), The Guardian reported. CIC paid US$414.5 million (GBP257 million) for the shares. More than 40% of the UK’s largest airport will now be held by the Chinese, Qatari and Singaporean governments, while Ferrovial’s ownership is now down to 34% from an original 55% after multiple deals. The Spanish company, which has struggled with security and weather crises in previous years, has asserted its commitment to Heathrow. “This sale of a stake in Heathrow Airport Holdings is a further part of Ferrovial’s investment diversification strategy. We will continue to work with the new shareholders and with existing shareholders to ensure Heathrow retains its position as one of the best infrastructure assets in the world,” said Íñigo Meirás, CEO of Ferrovial.