Edinburgh Airport owner acquired for £9.4 billion

BlackRock is acquiring Global Infrastructure Partners (GIP) in a cash-and-stock deal valued at more than £9.43bn.

The deal, announced on Friday, includes £2.36bn in cash and approximately 12 million shares of BlackRock.

About 30% of the total consideration, all in stock, will be deferred and is expected to be issued in approximately five years.

GIP, which was founded in 2006, manages £78.6bn in client assets across infrastructure equity and debt, with a focus on energy, transport, water and waste and the digital sectors.

It owns Edinburgh and Gatwick airports, having bought them following the break up of BAA, alongside a significant stake in Peel Ports, which in turn owns Clydeport, among others.

“Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy,” said BlackRock chair and chief executive Larry Fink.

“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 on-shoring or near-shoring of critical sectors.”

The deal is expected to close in the third quarter.

GIP’s portfolio companies employ around 115,000 people, with the firm itself having 400 employees in 11 offices. Both companies are headquartered in New York.

Adebayo Ogunlesi, GIP’s chair and chief executive, will join the BlackRock board.

GIP’s management will now be in charge of BlackRock’s enlarged infrastructure business.

Don’t miss the latest headlines with our twice-daily newsletter – sign up here for free.