GIP Edges Closer to Landmark $38 Billion Acquisition of AES

In a major financial development, Global Infrastructure Partners (GIP), owned by BlackRock, is approaching a landmark $38 billion deal, including debt, to acquire utility giant AES. This potential acquisition, reported by the Financial Times, underscores the escalating value of utility companies amid a surge in power demand driven by advancements in artificial intelligence and data center requirements.

While talks between GIP and AES are at an advanced stage, insiders caution that a final agreement is not guaranteed. Both firms have refrained from commenting on the ongoing negotiations, raising speculation across financial circles.

AES, having experienced substantial growth in its renewable energy unit, exceeded Wall Street's profit expectations last quarter. The company has flourished within the context of a global shift toward cleaner energy sources, with U.S. consumption projected to hit record levels. This has attracted interest from investment firms eyeing strategic acquisitions in the sector. Notably, GIP's proficiency in navigating the utilities sector is evidenced by its acquisition of U.S. utility Allete in 2024.

(With inputs from agencies.)