A consortium led by BlackRock’s Global Infrastructure Partners (GIP) and EQT AB have agreed to acquire global power utility, AES Corp. (NYSE:AES), for $15 per share in cash, totaling an enterprise value of approximately $33.4 billion. The deal, which includes major pension and investment funds, represents a ~40% premium for AES shares and includes the assumption of debt with a cash equity value of $10.7 billion. AES will continue to operate as a utility, with regulated businesses in Ohio and Indiana expected to remain under local, state, and federal regulation.
The AES acquisition is one of the largest in recent utility and power generation history, highlighting part of a broader “land-grab” for reliable power generation assets.
Back in January, Constellation Energy (NASDAQ:CEG) completed the acquisition of Calpine Corporation for a total transaction value of roughly $26.6 billion, creating the largest U.S. producer of clean and reliable electricity. The deal combined Constellation’s nuclear fleet with Calpine’s natural gas and geothermal assets to meet surging AI-driven power demand.
In the same month, NRG Energy (NYSE:NRG) completed the acquisition of a 13 GW natural gas power generation portfolio and CPower demand response business from LS Power for approximately $12–$13 billion in cash and stock. The acquisition significantly strengthens NRG’s position in the Northeast and Texas, bolstering its ability to provide reliable, flexible power during the current energy market “supercycle”.
This acquisition is a major move by NRG to capitalize on rising demand for power, particularly from data centers and increased electrification, by securing flexible, modern, and reliable generation. Last month, French utility giant Engie SA (OTCPK:ENGIY) announced it had signed an agreement to acquire 100% of UK Power Networks (UKPN) from Hong Kong’s CK Group in a deal valued at £10.5 billion ($14.2 billion) in equity.
Other deals in the space include Talen Energy’s (NASDAQ:TLN) definitive agreement to acquire the Cornerstone portfolio from Energy Capital Partners (ECP) for $3.45 billion as well as Blackstone’s purchase of TXNM Energy in an $11.5 billion deal.
By Alex Kimani for Oilprice.com
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