BlackRock’s GIP Eyes Major Acquisition with AES Utility Deal
BlackRock's Global Infrastructure Partners is close to securing a $38 billion acquisition deal for utility giant AES. The deal highlights a growing investor interest in utilities driven by increasing power demand from AI and data centers. AES has shown significant growth in renewable energy.
BlackRock's Global Infrastructure Partners (GIP) is reportedly on the brink of finalizing a $38 billion acquisition of utility group AES, a move expected to bolster its portfolio amidst an upsurge in demand for power driven by artificial intelligence and data centers.
The Financial Times reported that shares of AES experienced a significant rise, gaining over 16% following news of the potential acquisition. Despite the advanced stage of discussions between GIP, an infrastructure investment fund, and Virginia-based AES, there remains a possibility that negotiations could fall through.
The utilities sector has been attracting investors due to a marked increase in power consumption and a global trend towards cleaner energy solutions. AES, recognized for its renewable energy unit expansion, is contemplating strategic options amid growing interest from major investment firms. BlackRock's acquisition of GIP in the previous year underscores its strategic expansion in infrastructure investments.
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