AES’s global business
Project
Constellation acquired US power producer Calpine for $29 billion, as part of a trend of increasing merger and acquisition activity in the power and utilities sectors.
Deal Analysis
Constellation's announced acquisition of US power producer Calpine for $29 billion marks a significant transaction within the power and utilities sector. This strategic move aligns with Constellation Energy's stated commitment to building clean, reliable energy capacity while simultaneously meeting current demands. The substantial valuation of $29 billion underscores the scale of this deal and its potential impact on Constellation's operational footprint and market position.
This acquisition is particularly notable given its explicit mention as part of a broader trend of increasing merger and acquisition activity across the power and utilities sectors in the US. Such a trend suggests a dynamic market undergoing consolidation and strategic realignment. The involvement of Constellation, a key player focused on energy generation and capacity, as the buyer, further highlights the strategic importance of this deal in shaping the future landscape of the US energy market.
- $29 billion acquisition value.
- Constellation (buyer) is committed to building clean, reliable energy capacity.
- Calpine (seller) is a US power producer.
- The deal is part of a trend of increasing M&A activity in the power and utilities sectors.
Source Intelligence
KEY DETAILS
The transaction is the latest big announcement in a hot market for US power and utilities mergers and acquisitions, as companies jostle for position in anticipation of AI-driven demand spike. The transaction represents a 40.3% premium to the 30-day volume weighted average share price to July 8, 2025. AES has significant need for capital to support growth beyond 2027, particularly given the significant new investments in both US generation and utilities businesses. Taking the company private will give it “enhanced financial flexibility.”
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Deal Size
AES Corporation is being sold for $10.7 billion cash in a deal that will potentially see the world’s largest commercial and industrial clean energy supplier enter private ownership.
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Capacity
The company reported 32.1 GW of deployed generating capacity in 2024, 64% of which was renewables, with $12.3 billion in annual revenue for the year.
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Location
AES’s global business, which includes US electric utilities in Indiana and Ohio, plus a major global renewable generation portfolio.
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PPA Details
AES Corporation currently has 11.8 GW of clean energy supply agreements in place with major technology firms
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Financials
The deal will see the consortium buy AES for $15 per share in cash, representing a total equity value of $10.7 billion and an enterprise value of approximately $33.4 billion.
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Announcement
March 3, 2026
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Expected Close
The transaction is expected to close in late 2026 or early 2027.
PARTIES MENTIONED IN SOURCE
B
Blackrock-owned Global Infrastructure Partners
buyer
"Blackrock-owned Global Infrastructure Partners leads the consortium that is acquiring AES’s global business"
E
EQT Infrastructure VI fund
investor
"Investors joining Global Infrastructure Partners in the consortium include EQT Infrastructure VI fund"
C
California Public Employees’ Retirement System
investor
"Investors joining Global Infrastructure Partners in the consortium include EQT Infrastructure VI fund, California Public Employees’ Retirement System and Qatar Investment Authority."
Q
Qatar Investment Authority
investor
"Investors joining Global Infrastructure Partners in the consortium include EQT Infrastructure VI fund, California Public Employees’ Retirement System and Qatar Investment Authority."
A
AES Corporation
seller
"AES Corporation is being sold for $10.7 billion cash"
high quality
Enriched Mar 4, 2026
Global Infrastructure Sherpa