[BlackRock spends $12 billion to acquire global infrastructure partners]
New York Stock Exchange-listed BlackRock (ticker: BLK) today announced plans to acquire Global Infrastructure Partners (GIP) for approximately $12 billion.
BlackRock's cash and stock transaction aims to expand its influence in the infrastructure industry, which is regarded by its chief executive Larry Fink as one of the "most exciting long-term investment opportunities." After the cooperation, BlackRock and GIP will jointly create a "multi-asset infrastructure investment platform" with more than US$150 billion in assets under management.
The transaction, which is currently subject to regulatory approval, is expected to close in the third quarter of 2024. The news comes just days after BlackRock received SEC approval for a spot Bitcoin ETF.
Larry Fink said the expansion of physical and digital infrastructure is expected to continue to accelerate as governments prioritize self-sufficiency and security. BlackRock expects the acquisition to be positive for its adjusted earnings per share and operating profit within one year of closing.
To pay for the cash portion of the GIP agreement, BlackRock will take on an additional $3 billion in debt. Separately, BlackRock's recently released fourth-quarter asset management (AUM) and earnings per share (adjusted) data exceeded Wall Street expectations. Wall Street currently has an "overweight" rating on $BLK, with shares essentially flat in pre-market trading on Friday.