Lawmakers Urge FERC to Block $33B AES Buyout Over Ratepayer Concerns
AES is trading near its 52-week low of $12.97 (15% above the low).
Summary
A bipartisan group of US lawmakers, including Senator Elizabeth Warren, sent a letter to FERC Chairman Laura Swett on September 28 urging rejection of the $33.4B acquisition of AES by BlackRock's Global Infrastructure Partners, EQT, and other investors. The lawmakers argue the deal fails the public interest test and could raise electricity bills for consumers while benefiting data centers. AES responded that no acquisition costs will be borne by ratepayers in its regulated Indiana and Ohio utilities. This political pressure adds a new hurdle to a deal that has already cleared CFIUS and PUCO approvals, with FERC approval still pending. The letter's bipartisan nature and high-profile signatories increase the risk of regulatory delay or conditions, which could weigh on the stock as the deal's completion timeline becomes less certain.
At the time of this announcement, AES was trading at $14.86 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $10.6B. The 52-week trading range was $12.97 to $17.65. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.