US buyer

Edinburgh Airport acquired as part of $12.5bn deal

Edinburgh airport
Edinburgh Airport becomes part of another US asset manager

Edinburgh Airport has been acquired by the world’s biggest investor as part of a $12.5 billion deal which also involves Gatwick and some key ports.

Fund manager BlackRock is buying Global Infrastructure Partners (GIP), owner of Edinburgh and Gatwick, the UK’s second-biggest airport, in its biggest acquisition for a decade.

GIP manages $100bn of assets and acquired the airport assets following the break up of BAA. It also holds a stake in Peel Ports, owner of assets in Scotland and England.

The deal with $10 trillion asset manager Blackrock comprises $3bn in cash and $9.5bn in BlackRock stock.

GIP’s portfolio companies have combined annual revenues of $75bn and employ 115,000 people. The firm has 400 employees in 11 offices, compared with BlackRock’s 20,000. Both companies are headquartered in New York.

Adebayo Ogunlesi, a former Credit Suisse executive who is GIP’s chairman and chief executive, will join the BlackRock board. He launched the firm in 2006 and was, for a time, an adviser to former US president Donald Trump.

Another big winner in the deal is Michael McGhee, also formerly of Credit Suisse, who was another of the co-founders. Mr McGhee is an adviser to the Scottish government.  GIP has also employed the former Prime minister Sir John Major as chair of its advisory board.

GIP management will now be in charge of BlackRock’s enlarged infrastructure business. Larry Fink, 71, BlackRock chairman, said. “Infrastructure is one of the most exciting long-term investment opportunities as a number of structural shifts reshape the global economy.

“We believe the expansion of both physical and digital infrastructure will continue to accelerate as governments prioritise self-sufficiency and security through increased domestic industrial capacity, energy independence and onshoring or near-shoring of critical sectors.”

One Comment to Edinburgh Airport acquired as part of $12.5bn deal

  1. Sirs
    Could someone please explain to me how having the world’s largest asset management company taking ownership of Edinburgh airport demonstrates how “governments prioritise self-sufficiency and security” as stated by Larry Fink.

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