Global Infrastructure Partners Eyes $38 Billion Acquisition of AES
Global Infrastructure Partners is close to finalizing a $38 billion acquisition deal for utility group AES. The move highlights the growing investor interest in utilities driven by increased power demand from AI and data centers. AES has seen substantial growth in its renewable energy operations.
Global Infrastructure Partners (GIP), owned by BlackRock, is on the verge of securing a significant acquisition deal worth $38 billion, including debt, to take over the utility group AES. This move was reported by the Financial Times, citing insiders familiar with the ongoing discussions.
The shares of AES saw a remarkable increase of over 11%, reaching $14.65 in pre-market trading on Wednesday. The utilities sector is capturing investor attention as the demand for power amplifies due to advancements in artificial intelligence and data centers, leading to an uptick in dealmaking activity.
While GIP and Virginia-based AES are in advanced negotiations, the outcome remains uncertain. AES's recent surge in renewables, complemented by the global shift towards cleaner energy sources, aligns with projections of record U.S. power consumption levels. The utility space, already familiar to GIP due to past acquisitions, paves the way for further strategic expansions.
(With inputs from agencies.)
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