Airport operator BAA has agreed to sell the UKÔÇÖs Gatwick Airport to the US investment fund Global Infrastructure Partners for ┬ú1.5 billion.
The deal comes a year after Gatwick was put up for sale by BAAÔÇÖs Spanish parent company Ferrovial.
Madrid-based Ferrovial, SpainÔÇÖs second-biggest building company, bought BAA in 2006 for ┬ú10.1 billion.
BAA currently owns seven airports in the UK.
A ruling in March from the Competition Commission stated that BAA should sell its London-based Gatwick and Stansted airports, as well as either of the Scottish airports Edinburgh and Glasgow by 2011, in order to end its market dominance.
BAA is currently appealing against the ruling at the Competition Appeal Tribunal.
New York-based Global Infrastructure Partners already owns London Citi Airport. The fund is backed by Credit Suisse Group and General Electric.
Colin Matthews, BAA's chief executive, said: "Gatwick and its people have long been a central part of BAA and we are proud of the airport's development as one of the world's leading international airports.
"BAA is changing and today's announcement marks a new beginning for both Gatwick and BAA. We wish Gatwick well for the future and are confident that the airport will flourish under new ownership.
"BAA will focus on improving Heathrow and our other airports."
BAA said it plans to use the proceeds of the sale to repay some of its debt.
The sale of Gatwick had been experiencing some delays due to reduced air travel as a result of the recession, as well as several bidders, including Global Infrastructure and Citi Infrastructure Investors, failing to reach the asking price.
Passenger traffic at Gatwick, the UKÔÇÖs second busiest airport after Heathrow, fell by 7.2 per cent in the first nine months of this year.
The transaction, which is subject to EU regulatory approval, is expected to close by December.
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