US firm buys UK airport for $2.5b

An American investment fund has agreed to buy Gatwick Airport, Britain's second busiest hub, for £1.51 billion ($2.5 billion).

Airport operator BAA said it would 'sell its 100 percent interest in Gatwick Airport Limited to an entity controlled by Global Infrastructure Partners for £1.51 billion'.

The agreement came under the pressure of British regulators to end a dominance that 'hurts passengers and airlines'.

Regulators have forced BAA to hand over three of its seven airports in Britain — two in London and one in Scotland.

"BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA," BAA chief executive Colin Matthews said.

Ferrovial, Spain's second largest builder, bought BAA for £10.23 billion in 2006.