BlackRock-Backed GIP Nears $38 Billion AES Acquisition

Global Infrastructure Partners, owned by BlackRock, is close to securing a $38 billion deal to acquire utility company AES. The transaction highlights increasing investor interest in the utility sector as power demand rises. Talks are in advanced stages, though not yet finalized.

Global Infrastructure Partners, under BlackRock's ownership, is reportedly approaching a $38 billion deal to purchase AES, a prominent utility group. This move signals heightened investor interest in utilities due to rising power demand, driven by artificial intelligence and burgeoning data centers.

The Financial Times noted that AES shares saw a significant 16% increase to $15.33 following the news, although the discussions between GIP and AES remain preliminary and could still collapse. Reuters has not confirmed these details, as parties involved declined to comment or were unavailable.

AES, having exceeded profit expectations in Q2, continues to grow its renewables focus amidst a broader global transition to clean energy. BlackRock's 2022 acquisition of GIP was a strategic effort to bolster its infrastructure holdings in the private market.

(With inputs from agencies.)