AES Draws Takeover Buzz: Why Brookfield and BlackRock May Be Circling the $40B Clean Energy Giant

AES Corp., a major player in renewable and utility power with deep ties to Big Tech, is now exploring strategic options including a potential sale, according to reports. The Arlington, Virginia-based company has caught the eye of infrastructure giants such as Brookfield Asset Management and BlackRock’s Global Infrastructure Partners (GIP) after its stock plummeted nearly 50% over the past two years. The stock rebounded sharply—up nearly 20% in a day—amid reports of the takeover interest, bringing its market cap to around $9.4 billion, though its enterprise value still hovers around $40 billion due to high leverage. AES’s expansive renewable energy portfolio, long-term contracts with tech behemoths like Microsoft, Amazon, and Google, and a dominant presence in data center power supply have made it an attractive asset. However, any acquisition would be one of the largest leveraged buyouts in the utilities sector, with several complex hurdles to clear. Here are four key drivers explaining why this opportunity could still be appealing to Brookfield, BlackRock, or other infrastructure-focused investors.