(Reuters) -BlackRock-owned Global Infrastructure Partners (GIP) is nearing a $38 billion deal, inclusive of debt, to acquire utility group AES, the Financial Times reported on Tuesday, citing people briefed
on the matter.
Utilities are expected to benefit from a surge in demand for power driven by artificial intelligence and data centers, prompting companies and investors across the board to strike deals with them.
Talks between GIP and AES were at an advanced stage, but negotiations could fail to yield a deal, according to the FT report.
Reuters could not immediately confirm the report.
GIP, an infrastructure investment fund, declined to comment to the Financial Times. Meanwhile, AES and GIP did not immediately respond to a Reuters' request for comments outside regular business hours.
AES, which surpassed Wall Street estimates for its second-quarter profit in July, has experienced significant growth in its renewables unit over the past year. This expansion has been fueled by a global push for cleaner sources of power generation, coinciding with projections that U.S. power consumption will reach record levels.
Shares of AES surged nearly 13% on July 8 after Bloomberg News reported that the power provider was weighing strategic options, including a potential sale, following takeover interest from several major investment firms.
GIP has a track record in the utility space. In 2024, GIP and CPP Investments acquired U.S. utility Allete in a $6.2 billion take-private deal, including debt.
(Reporting by Gnaneshwar Rajan and Mrinmay Dey in Bengaluru; Editing by Alan Barona and Sherry Jacob-Phillips)
