In one of the largest acquisitions in the industry, a group led by BlackRock’s Global Infrastructure Partners and Swedish private equity firm EQT AB has decided to purchase U.S. power company AES Corp for $33.4 billion, including debt.
The deal, which was announced on Monday, continues a string of significant industry transactions, including Blackstone’s $11.5 billion acquisition of TXNM Energy and Constellation Energy’s $16.4 billion purchase of Calpine.
As the AI boom increases the demand for power, straining grids and driving investors towards reliable power portfolios.
The Energy Information Administration projects that after setting a second straight record in 2025, U.S. electricity consumption will continue to grow this year and the following.
To satisfy the skyrocketing demand from data centres that serve the expanding needs of businesses implementing the newest technology, the biggest electric utilities in the United States are increasing their investments in new power infrastructure.
With the consortium’s help, AES can now invest more easily and is free from the leverage metrics that investors like to see in a publicly traded company, according to Nicholas Amicucci, an analyst at Evercore ISI.
MONTHS-LONG OFFER
AES stated that the deal is anticipated to be completed in late 2026 or early 2027.
The consortium will purchase AES for $15 per share in cash, reflecting a total equity value of $10.7 billion.
The deal amounts to a 13% reduction from AES’s final close on Friday.
The agreement represents a 35.5% premium to July 8, the last closing date before the initial media coverage of a possible acquisition.
During premarket trade, AES shares fell more than 17%.
AES stated that it would have been forced to either make significant fresh equity issuances or cut back on or stop dividend payments in the absence of a deal.
The utilities owned and operated by AES in Ohio and Indiana will continue to be locally run.
The Qatar Investment Authority and the California Public Employees’ Retirement System are also members of the consortium.
With a $6.2 billion take-private agreement for Allete with CPP Investments in 2024, GIP has been growing its utility footprint.
