AES Shares Surge on $38B BlackRock Takeover Talks
Reports suggest BlackRock's Global Infrastructure Partners is nearing a deal, eyeing the energy provider's role in powering the AI boom.
Shares of The AES Corporation (AES) skyrocketed over 18% in heavy trading on Tuesday following reports that BlackRock's Global Infrastructure Partners (GIP) is in advanced talks to acquire the power company. The potential deal, valued at approximately $38 billion including debt, would mark one of the largest infrastructure takeovers in history.
suggest that an agreement could be finalized within days, though negotiations are ongoing. The news sent AES shares soaring, with trading volume swelling to more than six times its daily average as investors reacted to the prospect of a buyout. AES, in line with its company policy, has stated that it does not comment on market rumors or speculation.
The potential acquisition highlights a growing trend of infrastructure investors targeting utility companies that are critical to the rapidly expanding artificial intelligence sector. AES has become an attractive target due to its significant renewable energy portfolio and its role in supplying power to major tech companies, including Google, Amazon, and Microsoft, for their energy-intensive AI data centers. The deal underscores how traditional utility assets are being re-evaluated as essential infrastructure for the digital age.
This move comes after , including a potential sale, in July after receiving takeover interest from several infrastructure-focused investors. For BlackRock, which acquired GIP earlier this year, the transaction would represent a significant bet on the future of energy demand. , and this acquisition would be a landmark deal following its integration into the world's largest asset manager. The potential transaction signals a strong conviction in the sustained growth of renewable energy and the insatiable power demands of the AI revolution.