Shares in U.S. utility AES Corp. surged more than 12% in premarket trading Wednesday after reports that BlackRock-owned Global Infrastructure Partners (GIP) is preparing a takeover bid worth about $38 billion.
If completed, the transaction would rank among the largest infrastructure acquisitions in history.
The Financial Times first reported that GIP, a specialist in infrastructure investments, is close to reaching an agreement to acquire AES.
The bid would value the company, including its significant debt load, at around $38 billion.
Valuation and market context
AES, which operates renewable assets and utilities in Indiana and Ohio and manages liquified natural gas imports in Central America and the Caribbean, closed Tuesday with a market capitalization of $9.5 billion.
The company carries roughly $29 billion in debt, giving it an enterprise value just under $41 billion, according to FactSet.
The utility group has struggled with investor sentiment in recent years.
Shares have fallen 34% over the past 12 months and nearly halved in the last three years, reflecting a broader cooling toward renewable energy investments.
A lack of policy support also weighed heavily: the Trump administration signaled limited enthusiasm for renewables, and Congress eliminated green energy tax credits in July, further pressuring valuations in the sector.
Despite those headwinds, AES had rebounded about 40% from summer lows on speculation of takeover interest.
Bloomberg first reported that GIP and Brookfield Asset Management were likely suitors.
Strategic rationale behind the deal
BlackRock’s interest in AES underscores the rising importance of energy infrastructure amid soaring power demands from data centers.
Hyperscale technology firms such as Microsoft, Meta, and Alphabet are rapidly expanding their data center capacity, requiring vast amounts of electricity to fuel artificial intelligence and cloud computing operations.
AES, one of the largest publicly traded utilities in the US, has invested heavily in renewable energy grids—an area that could be critical in meeting the growing consumption needs of digital infrastructure.
Analysts suggest that GIP’s potential acquisition would not only rationalize AES’s complex operations but also position the business to benefit from the long-term shift from fossil fuels to renewables.
GIP itself has a strong track record in infrastructure.
Acquired by BlackRock for $12.5 billion in 2024, the investment firm manages nearly $200 billion in assets worldwide.
It owns stakes in Gatwick Airport in London and pipeline networks across the US and the Middle East.
Last year, it struck a $6.2 billion deal to take public utility company Allete private, underscoring its appetite for large-scale energy sector transactions.
Analyst sentiment and market implications
The size of the potential transaction could deter competing bids, reducing the likelihood of a drawn-out takeover battle.
While discussions are reported to be at an advanced stage, sources cautioned that a final agreement is not guaranteed.
Of the analysts surveyed by FactSet, only one recommended selling AES shares, though the consensus target price remained modest at $13.90, indicating limited upside before news of the possible acquisition.
If completed, the deal would give AES the backing of one of the world’s largest infrastructure investors at a time when the global energy sector faces unprecedented shifts in demand patterns.
For BlackRock, the acquisition represents a strategic bet on the intersection of renewable energy and the accelerating growth of artificial intelligence-driven data centers.
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