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UK regional airports face change of ownership

A US private equity fund is considering a move for the owner of Newcastle, Leeds-Bradford and Luton airports.

Los Angeles-based Ares Management corporation, which has $179 billion in investments, has made a preliminary approach for Australian financial services firm AMP in a deal worth $3.7 billion.

Its AMP Capital subsidiary acquired Leeds-Bradford airport in 2017 for £220 million from private equity firm Bridgepoint.

It owns Newcastle airport alongside seven local councils and has a 49% shareholding in Luton airport alongside Spanish airport operator Aena’s 51% stake.

Sydney-based AMP said it has “received significant interest” for its businesses, the Telegraphreported.

However, discussions are at a “very preliminary stage” and there is no guarantee of a deal, AMP said.

The potential transaction comes against a backdrop of a slump in traffic at UK airports as the Covid-19 pandemic brought air travel to a near standstill.

The government is being urged by the head of Manchester Airports Group and industry trade organisations to come up with a support package for the aviation sector to prevent further wide-scale job losses across UK airports with England on the verge of a second lockdown.

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