According to recent reports, the £500 billion Public Investment Fund (PIF) of Saudi Arabia played a role in the £4 billion takeover of Selfridges that occurred a year ago. This investment was made through Signa Holding, an Austrian property firm that partnered with Thailand’s Central Group to acquire the department store chain. While the exact amount of the PIF’s investment remains undisclosed, insiders suggest that it represented a minority share of Signa’s contribution.
The acquisition of Selfridges by the Central-Signa partnership transpired after the Weston family decided to sell the business following the passing of Galen Weston, the family patriarch. Interestingly, the consortium’s bid outperformed Qatar’s sovereign wealth fund, which happens to own Selfridges’ competitor, Harrods. Consequently, with Saudi Arabia’s involvement in the takeover, the rivalry between the two retail giants becomes even more complex.
It’s worth noting that the PIF has previously made substantial investments in the UK. In 2021, the fund gained control of the football club Newcastle United and became the second-largest shareholder in Aston Martin. Additionally, the PIF has actively diversified its investment portfolio by acquiring stakes in numerous Western businesses, particularly in the technology and entertainment sectors. The fund has also made controversial investments in sporting events, such as the LIV golf tour.
Despite these revelations, both the PIF and Signa have chosen to remain silent on the matter. A spokesperson for Signa clarified that there have been no changes in the ownership of Selfridges and that there are no plans to sell any part of the stake in the department store chain.
Overall, the involvement of the Saudi sovereign wealth fund in the takeover of Selfridges adds an intriguing element to the ongoing rivalry with Harrods. It also underscores the PIF’s ongoing efforts to expand its investments not only in the UK but also globally, as it seeks to diversify its portfolio and increase its influence internationally.
Useful links:
1. BBC – Selfridges Takeover by Central-Signa Consortium
2. Reuters – Saudi Arabia’s PIF Investor Profile
