GIP and EQT Are Nearing a Deal to Acquire Power Firm AES

Article content(Bloomberg) — BlackRock Inc.’s Global Infrastructure Partners LP and EQT AB are in advanced talks to acquire power company AES Corp., according to people familiar with the matter.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentA transaction that could be announced as soon as next week, said the people, who asked to not be identified because the talks are private. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentAES shares were up roughly 6.8% at 10:26 a.m. in New York on Friday, giving the company a market value of around $12.4 billion. AES earlier rescheduled its full-year earnings for March 3.Article contentArticle contentA final agreement hasn’t been reached and details including the valuation and timing could still change, the people said. Spokespeople for GIP and EQT declined to comment. A representative for AES didn’t respond to request for comment.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentInvestors view power providers such as publicly traded utility AES as key beneficiaries of surging electricity demand from data centers running artificial intelligence applications. However, AES’ share price had lagged that of its competitors despite a focus on providing renewable power to developers including Google, Microsoft Corp. and Amazon.com Inc. Article contentArlington, Virginia-based AES had explored strategic options after receiving takeover interest from infrastructure investors last year. In February, Bloomberg News reported that GIP and EQT had teamed up to bid on the company. Article content‘Constructive Path’Article contentAES executives have said that public markets are undervaluing the company, which owns a fleet of renewable generation equipment, including wind and solar, as well as natural gas and coal assets and a utility in both Indiana and Ohio.Article contentArticle contentIn a note on Friday, Bloomberg Intelligence analysts Gabriela Privetera and Nikki Hsu wrote that a takeover “could offer a constructive path for AES, whose valuation has persistently traded at a discount to peers amid a weaker-than-average balance sheet and significant international exposure, especially in developing markets.”Article contentGIP is one of the world’s most prolific infrastructure investors and in the last 12 months has led transactions including a $40 billion acquisition of Aligned Data Centers and an $11 billion lease deal involving Saudi Aramco’s natural gas facilities. Led by founding partner Adebayo Ogunlesi, the firm manages about $170 billion in assets and its equity portfolio companies generate combined annual revenue of $71 billion, its website shows.Article contentEQT’s infrastructure business invests across the digital, energy and logistics sectors, among others. Last year the firm raised €21.5 billion ($25.4 billion) for its latest infrastructure fund, which a top executive at the firm said at the time reflected the importance of energy transition.Article content—With assistance from Michelle F. Davis and Dinesh Nair.Article content(Updates shares, adds analyst comment from third paragraph.)Article contentTrending Canada's economy shrinks, dragging 2025 growth to slowest pace since height of pandemic Economy The (high) opportunity cost of paying off your mortgage early Mortgages Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Posthaste: Canada's housing affordability 'crisis' spreads, but this city is still a bright spot, says CMHC News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Canada's economy shrinks, dragging 2025 growth to slowest pace since height of pandemic Economy The (high) opportunity cost of paying off your mortgage early Mortgages Australia ships LNG 25,000 kilometres to Eastern Canada amid Asian slump Oil & Gas Canada's housing market suffers largest price decline among major economies, says BIS Real Estate Posthaste: Canada's housing affordability 'crisis' spreads, but this city is still a bright spot, says CMHC News