BlackRock’s Global Infrastructure Partners and EQT agreed to acquire power company AES Corp (AES.N) for $33.4 billion, sending shares down 17% as investors react to the all-cash takeover 1.
The deal positions the consortium to capitalize on surging electricity demand driven by artificial intelligence data centers, while providing AES with crucial capital for expansion beyond 2027.
Key Takeaways
- $15 per share offer represents 40% premium to pre-leak price
- Transaction expected to close in late 2026 or early 2027
- AES becomes private company under BlackRock-EQT ownership
Market Reaction & Context
AES shares plunged 17% in premarket trading Monday despite the premium valuation 2. The $15 per share cash offer represents a 40.3% premium to the 30-day volume weighted average price prior to July 8, 2025, when acquisition rumors first surfaced.
The utility sector has seen a wave of major acquisitions as private equity targets power infrastructure assets. Recent deals include Constellation Energy’s $26.6 billion Calpine purchase and Blackstone’s $11.5 billion TXNM Energy acquisition 3.
Strategic Rationale
The consortium includes California Public Employees’ Retirement System and Qatar Investment Authority as co-underwriters alongside GIP and EQT 4. AES operates regulated utilities in Indiana and Ohio serving 1.1 million customers, plus competitive clean energy assets across the Americas.
AES bills itself as “the largest global supplier of clean energy to corporations,” with 11.8 GW of signed agreements to supply power to major technology firms 5. The company’s renewable energy focus and battery storage capabilities align with growing data center demand.
Management Commentary
“AES has a significant need for capital to support growth beyond 2027, particularly given the significant new investments in both US generation and utilities businesses,” said Jay Morse, AES Board Chairman 6. Without the transaction, AES would likely need to cut or eliminate dividends and issue substantial new equity.
“We are seeing first-hand the increasing need for a secure energy supply amid expanding power demand worldwide,” said Masoud Homayoun, Head of EQT Infrastructure 7.
Transaction Details
The deal’s $33.4 billion enterprise value includes $10.7 billion in equity and assumption of existing debt. AES will continue operating its regulated Indiana and Ohio utilities under local management and regulatory oversight.
The transaction requires AES stockholder approval and federal, state and foreign regulatory clearances. Dividends are expected to continue until closing, which is anticipated in late 2026 or early 2027.
Industry Outlook
Private equity’s infrastructure appetite reflects the AI-driven power boom straining electrical grids nationwide. U.S. power consumption hit consecutive records in 2025 and is projected to grow further as data centers expand to support artificial intelligence applications 8.
The acquisition provides AES with patient capital to invest in grid modernization and clean energy expansion without the quarterly earnings pressures of public markets.
Not investment advice. For informational purposes only.
References
1Reuters (2026-03-02). “BlackRock, EQT-led group seals $33.4 billion AES deal in bet on AI power boom”. Reuters. Retrieved March 2, 2026.
2Paolo Confino (2026-03-02). “AES Plummets On Buy Out News. BlackRock, EQT To Take Utility Company Private”. Investor’s Business Daily. Retrieved March 2, 2026.
3Alex Kimani (2026-03-02). “BlackRock, EQT To Acquire AES Corp. in $33.4B Deal”. OilPrice.com. Retrieved March 2, 2026.
4Katie Fehrenbacher (2026-03-02). “BlackRock-led consortium is acquiring AES for $33.4B”. Axios. Retrieved March 2, 2026.
5The AES Corporation (2026-03-02). “Consortium Led by Global Infrastructure Partners and EQT Agrees to Acquire AES”. PR Newswire. Retrieved March 2, 2026.
6Kirkland & Ellis (2026-03-02). “Kirkland Advises Consortium Led by Global Infrastructure Partners (GIP) and EQT on Agreement to Acquire AES for $33.4 Billion”. Kirkland & Ellis LLP. Retrieved March 2, 2026.
7Thomson Reuters (2026-03-02). “BlackRock’s GIP and EQT to acquire AES Corp in a $33.4 billion deal”. WTVB AM. Retrieved March 2, 2026.
8Ground News (2026-03-02). “BlackRock’s GIP and EQT to buy AES Corp in $33.4 billion deal”. Ground News. Retrieved March 2, 2026.