European airport operators Aeroports de Paris (ADP) and Schiphol Group have secured clearance for their planned alliance, finalising an agreement which will initially run for 12 years.
Parisian airports operator ADP and Schiphol, which runs Amsterdam Airport, say they have obtained the required approvals to complete their tie-up which was first disclosed on 21 October. The companies have cemented the new partnership by acquiring 8% of one another's share capital.
Schiphol Group purchased its 8% ADP stake from the French Government for €530 million ($670 million), leaving the state with a 60.4% shareholding. ADP paid €370 million for its Schiphol shares, which were made available through a reserved capital increase.
ADP and Schiphol Group say: "This industrial co-operation agreement between two of Europe's leading airport groups represents a bold strategic move that is expected to generate significant benefits for the two groups and their clients in all key business areas."
The companies have secured cross-representation on one another's boards and four representatives from each side have been appointed to an industrial co-operation committee. Members of the committee will meet every two months, alternating between Paris and Amsterdam, and the two CEOs will chair the committee on a rotating basis.
Eight steering committees, covering various operational areas, have been created. An initial tranche of 30 initiatives, linked with the implementation and operational management of the co-operation, will be launched in the first quarter of 2009. The companies say a further 30 initiatives have been identified and will be rolled out in two subsequent waves.
ADP manages airports including Paris Charles de Gaulle, Orly and Le Bourget. In 2007 it generated €2.3 billion in revenues and handled 86.4 million passengers.
Schiphol Group owns and operates Amsterdam, Rotterdam and Lelystad airports, along with 51% of Eindhoven Airport.
It also has indirect stakes in New York JFK's Terminal 4 and Brisbane Airport's operating company. In 2007 it generated €1.1 billion in revenues and handled 50.4 million passengers.