A consortium of GIP and EQT Infrastructure VI Fund has agreed to acquire AES in a deal valued at about $33.4 billion, including debt
Shareholders will receive $15 per share in cash, a 40.3% premium to the pre-announcement share price, implying an equity value of $10.7 billion
AES said the deal provides needed capital to support growth beyond 2027, especially in US generation and utilities
The transaction is expected to close in late 2026 or early 2027
The AES Corporation, the US-based global energy group, has entered a definitive agreement to be acquired by a consortium led by BlackRock’s Global Infrastructure Partners (GIP) and Sweden’s EQT Infrastructure VI Fund that values the company at approximately $33.4 billion, including existing debt.
The California Public Employees' Retirement System (CalPERS) and Qatar Investment Authority (QIA) are co-underwriters in this transaction.
The buying consortium has offered to buy the company for $15/share in cash, a 40.3% premium to the share price prior to July 8, 2025, representing an equity value of $10.7 billion.
For the AES, this deal comes at a time when it requires capital to fund its growth, especially in the US. Without this deal, it might have had to cut or stop dividends or raise significant new equity.
“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,” shared Chairman of the AES Board of Directors, Jay Morse. “In the absence of a transaction with the Consortium, the Company would likely require a plan that includes reduction or elimination of the dividend and/or substantial new equity issuances. After extensive work and deliberation, we concluded that this transaction is in the best interest of AES stockholders.”
Through this acquisition, the AES says it will benefit from enhanced financial flexibility to accelerate its growth strategy as it aims to ‘expand its leadership as a premier clean energy platform across the Americas’.
The AES Corporation claims to be the largest supplier of clean energy to corporations globally, including 11.8 GW of signed agreements to supply power to major technology firms as the latter seek to secure energy supply for their growing portfolio of data centers. It operates in the space of solar, wind, energy storage, hybrid systems, natural gas, and coal, among others. According to its website, it operated 32.1 GW capacity globally, including 16 GW of renewable resources and 67 GW in development, as of 2024.
Recently, AES announced 20-year power purchase agreements (PPA) with Google for energy generation projects to be co-located with a new data center in Wilbarger County, Texas, without specifying the energy source.
As a private company post-acquisition, it will continue to invest in utility assets to serve its 1.1 million customers. Its regulated businesses, including AES Indiana and AES Ohio, will continue to be locally operated and managed regulated utilities. The transaction is expected to close in late 2026 or early 2027.
“EQT’s acquisition of AES will support the growth and modernization of essential energy infrastructure that underpins energy security, electrification, digitalization and resilient power systems across key markets,” said Head of EQT Infrastructure, Masoud Homayoun.