AER Rianta has completed the acquisition of a 40 per cent stake in Birmingham Airport, along with its joint venture partner, NatWest Ventures. The partner is paying £42 million for the stake, although it is understood that the vast bulk of the funding is being provided by NatWest, with Aer Rianta's main contribution coming through its airport management expertise.

The seven district councils of the West Midlands will retain 49 per cent of the shareholding in the airport, with the remaining 11 per cent held by the private sector. Formal approval by the EU Commission is expected by the end of next month.

The owners of the airport plan a £260 million, 10 year investment programme which they hope would increase passenger numbers from 5.4 million to over nine million by 2006. Aer Rianta is to be closely involved in the airport's development and also has a bid for a shareholding in three Australian airports, on which it says a decision is expected shortly.