BlackRock Announces $12.5 Billion Acquisition of Airport Owners Global Infrastructure Partners

BlackRock, the global investment giant, is set to acquire Global Infrastructure Partners (GIP) in a significant deal valued at over $12.5 billion. This transaction will include a cash component of $3 billion, along with approximately 12 million shares of BlackRock common stock. The acquisition is anticipated to be finalized in the third quarter of the year, pending regulatory approvals and other customary closing conditions.

GIP is a renowned fund manager with a substantial portfolio that includes strategic investments in major airports such as Edinburgh Airport, London Gatwick Airport, and Sydney Airport. The firm manages a vast portfolio of client assets exceeding $100 billion, specializing in infrastructure equity and debt across various sectors, including energy, transport, water, waste management, and digital infrastructure. GIP’s journey began in 2006 when it received initial investments of $500 million each from General Electric and Credit Suisse.

Within the aviation industry, GIP holds a majority stake in Edinburgh Airport, a significant player in Scotland’s air travel scene. In 2012, GIP acquired the airport from the British Airport Authority. Before the onset of the pandemic, Edinburgh Airport handled over 14.7 million passengers annually in 2019, rebounding to approximately 11.2 million in 2022.

GIP also previously held a majority ownership stake in London Gatwick Airport, which it acquired for $2.5 billion in 2009. However, in 2019, GIP completed a deal with Vinci Airports, resulting in GIP now managing a 49.99% interest in the UK’s second-largest airport, with Vinci holding the remaining stake.

Sydney Airport is another prominent asset in GIP’s portfolio, acquired as part of its collaboration with the Sydney Aviation Alliance consortium. This consortium, comprising GIP alongside entities such as the IFM Australian Infrastructure Fund, the IFM Global Infrastructure Fund, Australian Retirement Trust, AustralianSuper, and UniSuper, completed a monumental $16 billion deal for Sydney Airport in 2022.

BlackRock sees this acquisition as a strategic move, as it aligns with long-term structural trends favoring increased infrastructure investment, particularly in the aviation sector. The company emphasizes that the mobilization of capital through public-private partnerships will play a pivotal role in funding crucial infrastructure projects, given the substantial government deficits.

Larry Fink, CEO of BlackRock, expressed enthusiasm about the future prospects of this merger, stating, “GIP’s deep understanding of the factors and forces driving operational efficiency for long-term value creation have made them a global leader in infrastructure investing. Bringing these two firms together will create the infrastructure platform to deliver best-in-class investment opportunities for clients globally, and we couldn’t be more excited about the opportunities ahead of us.”

With this acquisition, BlackRock aims to fortify its position in the infrastructure investment landscape and capitalize on the potential growth in the airport and broader infrastructure sectors.