Macquarie Set to Acquire Birmingham Bristol and London City Airports in Multibillion Pound Deal

Australian infrastructure giant Macquarie is on the verge of securing a landmark multibillion-pound acquisition of three prominent UK airports: Birmingham, Bristol, and London City. The deal, currently in its final negotiation stages with Ontario Teachers’ Pension Plan (OTPP), represents a significant shift in British aviation infrastructure ownership.

The complex transaction involves OTPP’s varying ownership stakes across the three airports: 27 per cent of Birmingham, 55 per cent of Bristol, and 25 per cent of London City. The deal’s intricacy is heightened by Birmingham Airport’s co-ownership structure, which includes the city council – an organisation that declared bankruptcy in late 2023.

The airports represent substantial aviation assets in the UK market. Birmingham and Bristol, ranking as the country’s seventh and eighth largest airports, served 12.8 million and 10.6 million passengers respectively last year. Birmingham Airport recently secured a £230 million refinancing package to boost its annual passenger capacity to 18 million. London City Airport, though smaller, maintained a robust performance with 3.6 million passengers in the previous year.

Macquarie’s move comes despite recent criticism over its previous ownership of Thames Water. The Australian bank has positioned itself as a strong advocate for UK investment, pledging £20 billion in British projects over the next five years. While the exact valuation remains undisclosed, OTPP’s complete airport portfolio, which previously included Copenhagen and Brussels airports, was valued at over £10 billion.

The deal marks a significant milestone in UK aviation infrastructure ownership, with Macquarie demonstrating continued confidence in the British market despite broader economic uncertainties. Sources close to the negotiations indicate that while an agreement is near, final terms are still being established.