BlackRock Inc. agreed to acquire Global Infrastructure Partners in an approximately $12.55 billion deal that will bring together two of the world's largest investors in energy infrastructure, the companies said Jan. 12.
The transaction, which includes a $3 billion cash consideration and about 12 million BlackRock shares, will create a $150 billion combined business that is the second-largest infrastructure manager globally, behind Macquarie Group Ltd.
Global Infrastructure Partners (GIP) brings with it more than $100 billion of client assets across equity and debt, including an energy business valued at $33 billion. Legally known as Global Infrastructure Management LLC, its portfolio spans renewables, gas pipelines and LNG investments.
That includes a significant stake in Abu Dhabi National Oil Co.'s gas pipeline assets, as well as Eolian LP, a renewable energy developer in the US, and Atlas Renewable Energy USA LLC, the largest independently owned renewable power producer in Latin America.
GIP is also an investor in US renewables developer Clearway Energy Inc. In 2022, GIP sold part of its stake in Clearway to French oil major TotalEnergies SE for $1.6 billion in cash plus a stake in residential solar installer SunPower Corp.
In Europe, GIP's energy portfolio includes a 20.6% stake in Spanish utility Naturgy Energy Group SA and interests in several major offshore wind farms, such as the 1.2-GW Hornsea 1 project in the UK and the 450-MW Borkum Riffgrund 2 project in Germany.
The group is now eyeing the US offshore wind market via Bluepoint Wind, the 50/50 joint venture with Ocean Winds SL that is developing a 1.7-GW project off New York and New Jersey.
Separately, Guggenheim analysts on Jan. 12 referenced a report by industry news service PeakLoad that named GIP as being in negotiations to acquire Eversource Energy's US offshore wind portfolio.
BlackRock said the acquisition of GIP "creates [a] leading multi-asset class, whole portfolio infra investments platform," combining BlackRock's own infrastructure debt and third-party solutions offerings with GIP's infrastructure equity and debt franchises.
GIP's acumen in the transport and digital infrastructure sectors will also complement BlackRock's own activities in energy and renewables, the US asset manager said.
BlackRock intends to fund the deal's cash consideration with additional debt, adding that it expects the acquisition to be "modestly accretive" to its as-adjusted EPS and operating margin in the first full year post-close. Closing is expected in the third quarter of 2024 subject to customary approvals.
Perella Weinberg Partners served as lead financial adviser to BlackRock on the deal, with Skadden Arps Slate Meagher & Flom LLP and Fried Frank Harris Shriver & Jacobson LLP acting as legal counsel.
Evercore served as lead financial adviser to GIP, with Kirkland & Ellis LLP and Debevoise & Plimpton LLP acting as legal counsel.
