BlackRock to grow energy infrastructure biz with USD-12.5bn GIP buy

US investment giant BlackRock Inc (NYSE:BLK) has clinched a multibillion-dollar deal to acquire private equity firm Global Infrastructure Partners (GIP) in a move that will expand its infrastructure and energy security investment in the global decarbonisation setting.

BlackRock, the world’s biggest asset manager, said on Friday it will pay USD 3 billion (EUR 2.74bn) in cash and about 12 million common stock shares, worth about USD 9.5 billion at Thursday’s close.

Set up in 2006, GIP manages more than USD 100 billion worth of assets in the energy, transport, water and waste and digital sectors, among others. The company's portfolio includes investments in major renewable energy platforms such as ACS Renewables, Latin America-focused Atlas Renewable Energy, Vena Energy, Skyborn Renewables and Eolian. Its renewables portfolio at end-2022 consisted of onshore and offshore wind, solar, hydropower and energy storage assets totalling 19 GW.

Combining GIP with the BlackRock-managed infrastructure assets will create a business with more than USD 150 billion in infrastructure investments across a diversified portfolio including airport, data centre, water and waste and renewable energy assets globally.

“We believe the expansion of both physical and digital infrastructure will continue to accelerate, as governments prioritize self-sufficiency and security through increased domestic industrial capacity, energy independence, and onshoring or near-shoring of critical sectors,” said Laurence Fink, BlackRock’s chairman and CEO.

Once the deal closes in the third quarter of 2024, the combined infrastructure platform will be led by GIP’s management team.

(USD 1.0 = EUR 0.913)

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