AES Shares Surge Over 14% on $38 Billion BlackRock Takeover Report
The potential deal highlights growing demand for renewable energy infrastructure to power the artificial intelligence boom.
Shares of AES Corp (AES) soared in pre-market trading after reports emerged that BlackRock's Global Infrastructure Partners (GIP) is nearing a deal to acquire the U.S. utility for approximately $38 billion, including debt.
The potential acquisition, which could be announced within days, would be one of the largest infrastructure takeovers on record. AES stock jumped 14.06% to $15.01 in pre-market trading on the news, a significant reversal for a stock that had declined roughly 35% over the past year amid investor concerns about the renewable energy sector.
The deal's valuation represents a substantial premium to AES's market capitalization of approximately $9.4 billion before the news broke. The company has been after receiving takeover interest from multiple infrastructure investors, according to reports.
This move by BlackRock, which acquired GIP for $12.5 billion earlier this year, underscores a major strategic shift in infrastructure investing. The primary driver for the acquisition is AES's significant portfolio of renewable energy assets, which are critical for utilized by technology giants to support the artificial intelligence revolution. As AI's power demands surge, investors are increasingly targeting the energy grids and generation capacity required to sustain that growth.
Prior to the report, on AES stock, with an average price target of $16.60 per share. The potential takeover by a major player like BlackRock's GIP has reignited investor interest, highlighting the long-term value seen in the utility's position within the clean energy transition. The acquisition would significantly expand GIP's footprint in the renewable energy sector, following its $6.2 billion take-private deal for U.S. utility Allete in 2024.