The British government purchased shares in the Suez Canal in 1875.
The purchase was arranged by Prime Minister Benjamin Disraeli after Egypt’s ruler, the Khedive Isma'il Pasha, faced severe financial problems and needed to sell his holding. Britain bought 176,602 shares, representing about 44% of the Suez Canal Company, with financing arranged through the Rothschild banking family.
The deal did not make the canal British property, because the company remained jointly owned by international shareholders. It did, however, give Britain a controlling influence over the waterway and a powerful strategic advantage. The canal had opened in 1869 and provided the fastest sea route between Europe and India, greatly reducing the journey around Africa.
A common mix-up is confusing the purchase with the canal’s opening or with Britain’s later occupation of Egypt in 1882. The 1875 transaction was a financial and strategic investment that strengthened Britain’s imperial communications before formal military control of Egypt.