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FT reports that BlackRock's GIP is close to a $38 billion acquisition of utility group AES.

The Financial Times reported Tuesday that BlackRock's Global Infrastructure Partners (GIP), which is owned by BlackRock, was close to a deal worth $38 billion, including debt, for the utility group AES. This information came from people who were briefed about the situation.

Utilities will benefit from the surge in demand for electricity driven by artificial intelligence (AI) and data centers. This is causing companies and investors to make deals with utilities.

The FT reported that although negotiations between GIP and AES had advanced, they could still fail to produce a deal.

Could not confirm immediately the report.

GIP, a fund that invests in infrastructure, refused to comment on the Financial Times. AES and GIP didn't immediately respond to an 'outside regular business hours request for comment.

AES has seen its renewables division grow significantly over the last year. This is in line with Wall Street's expectations for AES' second quarter profit. The global drive for cleaner power generation coincides with predictions that U.S. electricity consumption will reach new records.

AES shares surged by nearly 13% after Bloomberg News reported on July 8, that the power company was considering strategic options including a possible sale following interest from major investment firms.

GIP is a utility specialist. GIP and CPP Investments purchased U.S. utility Allete for $6.2 billion, including debt, in 2024.

(source: Reuters)