BlackRock’s GIP Teams Up With EQT in Bid to Acquire Power Firm AES

Core Viewpoint - BlackRock Inc.'s Global Infrastructure Partners and EQT AB are in discussions to acquire AES Corp., a power company that supplies renewable energy to major tech firms like Microsoft [1][3]. Group 1: Acquisition Details - The two investment firms may finalize an agreement to purchase AES in the coming weeks, although no final decision has been made and discussions could extend or collapse [1]. - AES has been considering a sale after receiving interest from infrastructure investors, including GIP [3]. Group 2: Market Reaction - AES shares increased by as much as 7.7% in premarket trading, closing at $14.73, which gives the company a market capitalization of approximately $10.5 billion [2]. - Including debt, AES's total valuation is around $43 billion [2]. Group 3: Industry Context - Power providers are becoming attractive acquisition targets due to rising electricity demand from data centers supporting artificial intelligence applications [3]. - Recent acquisitions in the sector include Blackstone Inc.'s purchase of TXNM Energy Inc. and Constellation Energy Corp.'s acquisition of Calpine Corp. [3]. Group 4: Company Profile - AES, headquartered in Arlington, Virginia, operates a diverse portfolio of renewable energy generation assets, including wind and solar, as well as natural gas and coal facilities, and utilities in Indiana and Ohio [4].