NEW YORK- Edinburgh Airport (EDI), along with London Gatwick (LGW) and several crucial ports, has been acquired by the world’s largest investor, BlackRock, in a substantial $12.5 billion deal.
This transaction involves fund manager BlackRock purchasing Global Infrastructure Partners (GIP), which is the owner of Edinburgh and Gatwick, the second-largest airport in the UK, marking BlackRock’s most significant acquisition in a decade.
Gatwick and Edinburgh Acquired by BlackRock
Global Infrastructure Partners (GIP) oversees $100 billion worth of assets and gained control of the airport assets as part of the BAA breakup. Additionally, GIP holds a stake in Peel Ports, which owns assets in both Scotland and England.
The deal with BlackRock, a powerhouse with assets totaling $10 trillion, includes a payment of $3 billion in cash and $9.5 billion in BlackRock stock.
The combined annual revenues of Global Infrastructure Partners (GIP) portfolio companies amount to $75 billion, employing 115,000 individuals.
GIP operates with 400 employees across 11 offices, in contrast to BlackRock’s larger scale, which boasts 20,000 employees. Both companies are headquartered in New York.
Getting Board Seats
Adebayo Ogunlesi, GIP’s Chairman and Chief Executive and a former executive at Credit Suisse, is set to join the BlackRock board. Ogunlesi, who founded GIP in 2006, previously served as an adviser to former US President Donald Trump.
Another significant beneficiary of the deal is Michael McGhee, also a former Credit Suisse executive and co-founder of GIP.
McGhee, currently an adviser to the Scottish government, played a key role in the transaction. GIP has also enlisted former UK Prime Minister Sir John Major as the chair of its advisory board.
Following the acquisition, GIP management will take the helm of BlackRock’s expanded infrastructure business. Larry Fink, BlackRock’s 71-year-old Chairman, expressed enthusiasm about the long-term investment prospects in infrastructure, citing global economic shifts.
Fink stated, “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 prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors.”
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