Manchester Airports Group (MAG) has agreed to buy London's Stansted Airport from Heathrow Airport Holdings for £1.5 billion (€1.78 billion).
As part of the transaction, Australian infrastructure investment group Industry Funds Management (IFM) will become an investor in MAG, invest new equity and take a 35.5 per cent stake in the enlarged group, MAG said.
Stansted, which is predominantly a low-cost leisure and holiday travel airport, is based 50 kilometres northeast of central London and is Britain's fourth busiest airport, handling just under 18 million passengers last year.
The Stansted sale is part of a drive by Britain's competition regulator to loosen the grip of Heathrow Airport Holdings - formerly BAA - on the UK airports market.
MAG owns and operates Manchester airport in north west England, as well as two other British airports.
Spain's Ferrovial is the largest investor in Heathrow Airport Holdings with a 34 per cent stake. Other investors include Qatari and Chinese funds.
Reuters