China buys Heathrow operator stake

HeathrowThe Chinese government's main sovereign wealth fund says it has bought a 10% stake in the operator of Heathrow Airport, expanding its investments in British infrastructure.

China Investment Corp (CIC) gave no financial details but Ferrovial, the Spanish company which owns 49.99% of Heathrow Airport Holdings, said the fund paid other shareholders a total of 725.8 million US dollars (£449.9 million) to acquire its stake.

CIC was created in 2007 to manage a portion of China's multitrillion-dollar foreign reserves in hopes of earning a higher return.

Its early investments were mostly small stakes in publicly traded companies to avoid stirring political opposition abroad but the fund has begun making bigger direct investments.