Mizuho Downgrades AES After $10.7 Billion Takeover Agreement

The AES Corporation (NYSE:AES) is included among the 14 Best Dividend Stocks to Invest in Under $50.

On March 3, Mizuho analyst Anthony Crowdell downgraded The AES Corporation (NYSE:AES) to Neutral from Outperform. The analyst set a $15 price target. The change followed the company’s agreement to be acquired by a group led by Global Infrastructure Partners and the EQT Infrastructure VI fund. The buyers plan to purchase AES for $15.00 per share in cash, giving the company a total equity value of about $10.7 billion. The acquisition was announced on March 2.

Reuters reported that the consortium, led by BlackRock’s Global Infrastructure Partners and Swedish private-equity firm EQT AB, agreed to buy AES in a deal valued at about $33.4 billion, including debt. The transaction adds to a series of large deals in the power sector. Investors have been moving toward stable power assets as demand rises alongside the expansion of AI infrastructure. Recent examples include Blackstone’s $11.5 billion acquisition of TXNM Energy and Constellation Energy’s $16.4 billion purchase of Calpine.

Under the terms of the agreement, the consortium will acquire AES for $15 per share in cash. The offer values the company’s equity at about $10.7 billion. AES said the transaction is expected to close in late 2026 or early 2027. The offer represents a 13% discount to AES’ last closing price on Friday. It also reflects a 35.5% premium to the July 8 closing price, which came before the first media reports about a possible acquisition.

AES noted that without the transaction, it may have needed to reduce or eliminate dividend payments or issue a significant amount of new equity. The agreement includes reciprocal termination fees. The consortium would pay $100 million or up to about $588 million under certain conditions. AES would pay about $321 million if specific terms trigger a termination payment.AES’ utility operations in Indiana and Ohio will continue to operate as locally managed utilities. The buyer group also includes the California Public Employees’ Retirement System and the Qatar Investment Authority. Global Infrastructure Partners has been expanding its utility investments. In 2024, the firm completed a $6.2 billion take-private deal for Allete alongside CPP Investments.

The AES Corporation (NYSE:AES) operates as an energy company with four business segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. Its renewables portfolio includes solar, wind, energy storage, and hydro generation facilities.

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