BlackRock Eyes $38 Billion Acquisition of Power Utility Major

Core Insights - BlackRock's Global Infrastructure Partners is negotiating to acquire AES, a power utility, in a deal potentially valued at $38 billion, marking it as one of the largest public power utility acquisitions in U.S. history [1] - AES has a substantial debt load of $29 billion, while its market capitalization has increased from $9.4 billion to $10.94 billion, suggesting the total deal value could exceed $40 billion [2] - The acquisition interest is driven by the rising electricity demand from the IT sector, particularly due to artificial intelligence developments and the need for data centers [3] Company Overview - AES has been exploring a sale after receiving takeover interest from large investment firms, with an enterprise value previously estimated at around $40 billion [4] - The company has contracts with major tech firms like Google, Microsoft, and Amazon, but its stock has seen a decline of 38% earlier this year and approximately 23% over the past 12 months, although it rebounded following news of the acquisition talks [4] - BlackRock acquired Global Infrastructure Partners for $12.5 billion last year, and the firm currently manages around $200 billion in assets globally [5]