A consortium led by BlackRock’s BLK-N Global Infrastructure Partners and Swedish private-equity firm EQT AB has agreed to buy U.S. power company AES Corp. AES-N for US$33.4-billion, including debt, in one of the biggest acquisitions in the sector.
The deal, announced on Monday, extends a wave of big transactions in the industry, such as Blackstone’s US$11.5-billion acquisition of TXNM Energy and Constellation Energy’s US$16.4-billion buy of Calpine, as the AI boom increases the demand for power, straining grids and pushing investors toward dependable power portfolios.
U.S. power consumption will continue to rise this year and the next, after hitting a second consecutive record in 2025, according to estimates by the Energy Information Administration.
The largest U.S. electric utilities are ramping up spending on new power infrastructure to meet soaring demand from data centers that cater to the surging needs of companies adopting the latest technology.
“With the support of the consortium, AES now has improved access to capital to invest and is no longer beholden to the leverage metrics that investors wish to see in a public company,” Evercore ISI analyst Nicholas Amicucci said.
The consortium will acquire AES for US$15 per share in cash, representing a total equity value of US$10.7-billion, AES said, adding that the transaction is expected to close in late 2026 or early 2027.
The offer represents a 13-per-cent discount to AES’ last close on Friday. The deal is a 35.5-per-cent premium to July 8, the last close before the first media report of a potential acquisition.
Shares of AES tumbled more than 17 per cent in early trading, their lowest level since Jan. 26.
In the absence of a transaction, AES said it would have had to reduce or eliminate dividend payments or make substantial new equity issuances.
The agreement includes reciprocal termination fees. The consortium will pay US$100-million or up to about US$588-million, while AES will pay roughly US$321-million under specified terms.
AES’ units in Indiana and Ohio will remain locally operated and managed utilities.
The consortium also includes California Public Employees’ Retirement System and the Qatar Investment Authority.
GIP has been expanding its utility footprint, including a US$6.2- billion take-private deal for Allete with CPP Investments in 2024.
AES’ net debt stood at US$27.56-billion as of Dec. 31.