Saudi Arabia's Public Investment Fund (PIF) will take a 10% stake in London Heathrow Airport as part of a restructuring among shareholders, making it part owner of one of Europe's busiest airports alongside the Qatar Investment Fund.

The fund is buying the stake from Spanish company Ferrovial, which is selling its 25% stake for GBP2.4bn. The remaining 15% will be acquired by Ardian, a PE firm based in Paris. The Spanish company's decision to sell ends its nearly 20-year ownership of the UK airport. Ferrovial originally acquired a majority stake in the airport operator (then known as BAA) for USD 18.8 billion in 2006 and has gradually reduced its stake. In addition, Ferrovial retains a 50% stake in Aberdeen, Glasgow and Southampton airports.

The PIF manages over US$700 billion in assets invested in a range of sectors including automotive, food and agriculture, construction, real estate, healthcare and many others, with the aim of diversifying and strengthening the Kingdom's economic sustainability through strategic investments and initiatives. The aim is to prepare the country, which is the largest exporter of oil, for a post-oil future. For example, in August the fund bought Jet Lessor for US$3.6 billion and in September chemicals producer Sabic for about US$3.3 billion. PIF also has plans to enter the mining sector and is currently in talks to buy a 10% stake worth $2.5 billion in base metals miner Vale SA.