33 billion deal would shift utility owner toward private control
AES, the parent of regulated utility AES Indiana, said Monday it has agreed to be acquired in a transaction valued at about $33.4 billion including debt, a move that could ultimately take the power company private. The announcement immediately drew reactions in Indiana, where AES Indiana is one of the state’s largest investor-owned electric utilities and serves the Indianapolis area.
The company said it reached a definitive agreement with a buyer group that includes Global Infrastructure Partners, a BlackRock subsidiary based in New York, and Swedish firm EQT’s Infrastructure VI fund. Two large institutional investors are also participating as underwriters, the California Public Employees’ Retirement System and the Qatar Investment Authority, Qatar’s sovereign wealth fund.
AES said shareholders will receive $15 per share in cash, implying an equity value of $10.7 billion. The company placed the enterprise value, which includes debt, at about $33.4 billion. AES expects the deal to close in late 2026 or early 2027, indicating a long timeline that will likely include regulatory review and other closing conditions.
AES argues deal supports capital needs without raising rates
AES President and Chief Executive Andrés Gluski said the transaction maximizes value for current shareholders while positioning the business for long-term performance. He said, “We believe this transaction maximizes value for existing stockholders and positions the Company for long-term success as we continue delivering on our commitments to customers, communities and people.”
Chair of the board Jay Morse said that without a deal AES would likely have faced tough tradeoffs, including cutting or eliminating dividends or issuing substantial new equity. The company said backing from the investor group should expand access to capital needed to invest in energy infrastructure.
AES also framed the agreement as compatible with its regulated utility obligations. It said its electric utilities in Indiana and Ohio are experiencing significant demand growth, and it emphasized a focus on reliability and affordability. The company said it serves 1.1 million customers across those utilities and stated that as a private company it will continue to invest prudently to meet rising energy needs.
AES said AES Indiana and AES Ohio will remain locally operated and managed regulated utilities. It also said the acquisition is not expected to affect customer rates, an assertion aimed at addressing immediate public concern about the potential impact of private ownership on an essential service.
AES Indiana footprint makes the deal politically sensitive
In Indiana, the announcement landed on politically charged ground. AES Indiana is one of the state’s big five investor-owned electric utilities and serves more than 500,000 retail customers in Indianapolis and surrounding areas. According to an integrated resource plan filed last year with state regulators, its exclusive service territory covers about 530 square miles.
Because the company operates as a regulated utility, rate changes and investment plans are subject to oversight. Even so, state and local leaders raised concerns that private ownership could introduce different incentives, particularly when the investor group includes large financial sponsors and a foreign sovereign wealth fund.
Lawmakers warn of profit pressure while governor focuses on rates
Indianapolis Democrats criticized the proposed buyout and argued it could worsen affordability for residents. U.S. Representative André Carson said he is worried private ownership would harm Hoosiers and argued that private firms with stakes in public utilities could prioritize profit over public needs. “I’m very concerned that AES’s move toward private ownership will hurt Hoosiers,” he said. “Private firms having a stake in public utilities, an essential service, will put profits over people.”
State Representative Cherrish Pryor said the timing of the announcement, coming just after Friday’s conclusion of Indiana’s 2026 legislative session, appeared designed to avoid efforts that could regulate or block such sales. She said AES has prioritized shareholder profits and argued that selling to private equity would intensify that dynamic. Pryor said she fears the transaction could allow constituents to be exploited and could set a precedent across the state.
Republican Governor Mike Braun took a more neutral stance during an unrelated news conference on Monday. He said the main standard for evaluating the outcome should be whether rates move lower. “We want to see rates coming down, and that’s going to be the main criterion,” Braun said. “Very simple, BlackRock or anyone else.”
The debate sets up a longer period of scrutiny as the deal progresses toward its projected closing window. With AES stating rates should not be affected and critics warning about profit incentives, attention is likely to focus on regulatory oversight, utility investment plans, and whether promised local management structures remain intact as ownership changes.