France’s Groupe ADP has bought a 49% stake in New Delhi-headquartered GMR Airports, part of infrastructural specialist GMR Group.
The Rs107.8bn (US$1.5bn) acquisition is the conclusion of an industrial strategic partnership, according to ADP. As part of the terms of transaction, GMR will retain management control over the airports business with Groupe ADP having the customary rights and Board representation at GMR Airports and its key subsidiaries.
According to the two companies, the deal will unveil a first-of-its-kind airport development and operations platform globally, opening up new opportunities for route development, enhanced expertise in operations, retail, IT, innovation, engineering and many more areas. As per 2019 passenger statistics, the combined number of passengers handled by GMR Airports and Groupe ADP stands at 336.5 million, the highest of any airport operation in the world.
“The acquisition of a 49% stake in GMR Airports fits within Groupe ADP’s strategy. It sets a robust industrial partnership and enables Groupe ADP to build, only two years after taking control of TAV Airports, a unique worldwide network of airports with a solid industrial expertise and strong development capacities. This acquisition will constitute a growth driver in the medium term, and also a transforming position for the group in one of Asia’s and the world’s most dynamic and promising countries,” said Augustin de Romanet, chairman and chief executive officer of Aéroports de Paris-Groupe ADP.
The new relationship between GMR and Groupe ADP is being structured as a strong strategic partnership to be built on a two-way exchange of expertise, personnel, knowledge and market access.
“The partnership with Groupe ADP is in line with GMR’s business direction to become a global airport developer and operator. We have been on a journey of defining airports of the future with key focus on passenger experience by leveraging enhanced technology and offering superior amenities. With Groupe ADP, GMR will have smoother access to global markets, opening up newer avenues of business growth,” said GMR Group chairman GM Rao.