August 26th, 2008Manchester airport owner bids for Gatwick
BAA has been approached by the Manchester airport owner for the purchase of Gatwick airport. It is learnt that Competition Commission is likely to force the sale of Gatwick this week. The Manchester Airport Group (MAG) has made this offer to Sir Nigel Rudd, chairman of BAA, ahead of a report from the Commission.
According to MAG chief executive, Geoff Muirhead, who is owner of the Humberside, East Midlands and Bournemouth airports, the group wants to add company value, for its shareholders, by acquiring more airports. He claims that MAG has a large number of skilled people with a good record of running airport operations.
However, MAG would not be able to buy Gatwick on its own, instead the company may have to team up with other investors. Gatwick airport is likely to cost up to £3bn. Other expected bidders include German construction group Hotchtief, Global Infrastructure Partners and Australian financial service group Macquaire. A provisional findings report by the Competition Commission into BAA will probably be issued on Wednesday or Thursday.
BAA, taken over by a consortium in 2006, was fully aware that it would have to sell its London airport after the publication of the Commission’s report. There is also a possibility that BAA may be forced to sell Stansted and one of its Scottish airports if the Commission deems it necassary for them to go under separate control. Ryanair boss is keenly interested in buying Stansted for £2bn. BAA did not comment.