EU antitrust regulator clears sale of AES to GIM and EQT consortium

what happened

The European Union's antitrust regulator has approved the planned sale of AES Corp. to a consortium led by Global Infrastructure Management and EQT Infrastructure. In a statement posted on its website on Friday, the European Commission said the deal raises no competition concerns, given the limited market positions of the companies after the transaction. According to Seeking Alpha, AES disclosed last month that it had received approval for its sale to a consortium led by BlackRock's infrastructure arm and EQT Infrastructure. In August, the company had also won approval for the combination.

In March, AES agreed to be acquired by a consortium including GIM and EQT, together with California Public Employees Retirement System and Qatar Investment Authority. The offer is $15 per share in cash, valuing the equity at $10.7 billion and the enterprise, including debt, at about $33.4 billion.

why it matters

A large energy asset deal backed by private capital is moving closer to completion, and each regulatory clearance lowers the risk that it falls apart. For markets, it signals that infrastructure and utility companies remain attractive targets for funds seeking long-term, stable cash flows.

market impact

US power sector: EU clearance reduces regulatory risk for the $33.4 billion enterprise deal, including debt

tags

instruments