March 2 (Reuters) - A consortium led by BlackRock-owned Global Infrastructure Partners and equity firm EQT AB on Monday agreed to acquire AES Corp in a deal value of $33.4 billion (Reporting by Sumit
BlackRock, EQT-led group seals $33.4 billion AES deal in bet on AI power boom
By Sumit Saha
Major Acquisition in the U.S. Power Sector
March 2 (Reuters) - A consortium led by BlackRock's Global Infrastructure Partners and Swedish private-equity firm EQT AB has agreed to buy U.S. power company AES Corp for $33.4 billion, including debt, in one of the biggest acquisitions in the sector.
The deal, announced on Monday, extends a wave of big transactions in the industry, such as Blackstone's $11.5 billion acquisition of TXNM Energy and Constellation Energy's $16.4 billion buy of Calpine, as the AI boom increases the demand for power, straining grids and pushing investors toward dependable power portfolios.
Rising Power Demand Driven by AI
U.S. power consumption will continue to rise this year and the next, after hitting a second consecutive record in 2025, according to estimates by the Energy Information Administration.
The largest U.S. electric utilities are ramping up spending on new power infrastructure to meet soaring demand from data centers that cater to the surging needs of companies adopting the latest technology.
Analyst Insights on the Deal
"With the support of the consortium, AES now has improved access to capital to invest and is no longer beholden to the leverage metrics that investors wish to see in a public company," Evercore ISI analyst Nicholas Amicucci said.
AES Financial Performance
AES on Monday topped Wall Street's full-year adjusted profit estimates, helped by strong power demand.
The utility posted adjusted profit of $2.34 per share, compared with analysts' average estimate of $2.16 per share, according to data compiled by LSEG.
Deal Structure and Terms
Months-Long Negotiations
MONTHS-LONG DEAL
The consortium will acquire AES for $15 per share in cash, representing a total equity value of $10.7 billion, AES said, adding that the transaction is expected to close in late 2026 or early 2027.
The offer represents a 13% discount to AES' last close on Friday. The deal is a 35.5% premium to July 8, the last close before the first media report of a potential acquisition.
Shares of AES tumbled more than 17% in early trading, their lowest level since January 26.
Financial Implications for AES
In the absence of a transaction, AES said it would have had to reduce or eliminate dividend payments or make substantial new equity issuances.
The agreement includes reciprocal termination fees. The consortium will pay $100 million or up to about $588 million, while AES will pay roughly $321 million under specified terms.
Consortium Members and Future Plans
AES' units in Indiana and Ohio will remain locally operated and managed utilities.
The consortium also includes California Public Employees' Retirement System and the Qatar Investment Authority.
GIP has been expanding its utility footprint, including a $6.2 billion take-private deal for Allete with CPP Investments in 2024.
AES' net debt stood at $27.56 billion as of December 31.
(Reporting by Sumit Saha, Katha Kalia, Pooja Menon and Pranav Mathur in Bengaluru; Editing by Maju Samuel, Sriraj Kalluvila and Tasim Zahid)
