Mega Merger Talks: BlackRock's GIP Eyes Acquisition of Utility Giant AES
BlackRock's Global Infrastructure Partners is reportedly in advanced negotiations to acquire the utility group AES, a move that would mark one of the largest deals involving a U.S.-listed power firm. The potential transaction could value AES at over $40 billion, highlighting the growing investor interest in power companies fueled by surging demand from AI and data centers.
BlackRock-owned Global Infrastructure Partners is in advanced discussions to acquire utility powerhouse AES, insiders have revealed. The move, a potential mega-deal, could rank among the largest involving a U.S. power company, as AES shares soared following the news first covered by the Financial Times.
Carrying a consolidated debt of around $29 billion, AES saw its market capitalization reach $10.94 billion by Wednesday's close, suggesting a deal valuation exceeding $40 billion. Sources indicate that a formal transaction announcement could emerge soon, though caution remains due as talks have yet to reach finality.
The surge in investor interest in power firms is attributed to the growing demand driven by artificial intelligence and data centers. This has spurred notable dealmaking in the sector, with AES experiencing substantial expansion in its renewables division amidst a global shift toward cleaner energy sources. Meanwhile, BlackRock, having acquired GIP for $12.5 billion last year, continues to bolster its infrastructure portfolio.
(With inputs from agencies.)
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