What Does AES’s $33bn Acquisition Mean for Shareholders?

Utilities and clean energy company AES is being acquired by a consortium led by BlackRock-owned Global Infrastructures and EQT in a US$33bn deal. 

Stockholders will receive US$15 per share in cash. 

In a press release, Andrés Gluski, President and Chief Executive Officer of AES, says of the acquisition: “Over the course of our 45-year history of powering industries and shaping the future of energy, AES has built a diverse portfolio to meet the evolving power needs of our customers and communities. 

“We believe this transaction maximises value for existing stockholders and positions the company for long-term success as we continue delivering on our commitments to customers, communities and people.”

According to AES, going private will give the company better financial flexibility, allowing it to advance its sustainable energy strategy and facilitate long-term growth. 

“We look forward to partnering with the consortium, which has expressed an appreciation for the value of AES' innovation, global reach and diverse portfolio," says Andrés. 

The acquisition is expected to be complete by late 2026 or early 2027. 

AES’ ‘significant need for capital’

AES stocks dropped by 17% following the announcement. 

In October, BlackRock had reportedly begun negotiations with AES in a deal that initially valued the company at US$38bn. According to Reuters, this would have been one of the largest ever involving a US-listed power company. 

Despite high investor optimism, the company ended up being acquired for close to US$5bn less than originally anticipated – but Jay Morse, Chairman of AES’ Board of Directors, said that the deal was necessary to meet the company’s “significant need for capital”. 

He said: “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.”

A funding strategy for sustainable data centres

According to AES, this acquisition will better position it to drive long term growth, particularly as it looks to meet demand for clean energy for data centres. 

The company has secured 11.8 GW of clean energy supply agreements with companies such as Microsoft, Alphabet and Amazon, including a 20-year deal for Google’s data centre in Wilbarger County, Texas. 

Through this deal, the company is developing, owning and operating new co-located renewable energy generation for Google’s Texan data centre. 

Andrés says: “Our expanded partnership with Google demonstrates how AES can accelerate data centre development by delivering powered land and energy at scale.

“AES is recognised as a world leader in providing energy solutions to technology companies. To-date, AES has signed agreements for nearly 12 GW of energy with data centre customers, 9 GW of these are PPAs directly with hyperscalers.”

AES says it intends to use internal cash flow and proceeds from asset sales to fund the upfront costs from the deal, and it is set to support the company’s projected US$12bn in revenue and US$1.7bn in earnings by 2028.