Stansted takeover boost for Manchester Airports Group

MANCHESTER Airports Group’s chances of buying Stansted Airport, have received a major boost, after BAA finally agreed to accept a legal ruling forcing it to sell.

MAG, which recently sold Humberside Airport, leaving it to focus on Manchester, Bournemouth and East Midlands, wants to add another large asset to its portfolio, and has had its eyes on Stansted – the UK’s fourth-largest airport by passenger numbers – for some time.

In a short statement, BAA – which has also been forced to sell Gatwick Aiport on competition grounds – said it had ended its legal challenge to halt the forced sale of Stansted.

It said: “Having carefully considered the Court of Appeal’s recent ruling, BAA has decided not to appeal to the Supreme Court and is now proceeding with the sale of Stansted Airport.

“We still believe that the Competition Commission ruling fails to recognise that Stansted and Heathrow serve different markets.”

MAG is in the midst of a major corporate transaction to sell a stake in itself to give it the financial firepower to bid for Stansted in Essex.

Recent reports suggest that Australian infrastructure company Industry Funds Management is set to take a 35% stake in MAG – which is currently owned by the Greater Manchester’s local authorities.

Investors from China and the Middle East have also been linked with a partnership with MAG.

In a joint statement Manchester Airports Group and AGMA – the Association of Greater Manchester Authorities said: “Following a strategic review of the group’s performance and future prospects, MAG is pursuing two key recommendations: one to explore the opportunity to add a quality airport to the Group and the other, to bring in new equity investment as part of the deal.

“Both of these recommendations are inter-dependent and one will not happen without the other.

The statement continues: “To make this possible, new governance arrangements are necessary, which each of the 10 Greater Manchester authorities would have to consider. AGMA has agreed an in-principle framework for a new structure which will be considered by the individual local authorities over the coming weeks.

“In parallel with this process, MAG will begin to invite detailed proposals from private investors.  No final decisions will be taken – and no further substantive statement issued – before a potential investment partner has been identified and detailed arrangements progressed. We anticipate it will take a few months to reach this point.”