BlackRock reached an agreement on Friday to acquire Global Infrastructure Partners for $12.5 billion, according to statements and reports. It's a move aimed at advancing the investment giant's climate goals and leveraging government subsidies.
BlackRock is the world's largest asset manager and champions environmental, social and corporate governance (ESG) investing. BlackRock believes the timing of the deal is right as both companies share a commitment to decarbonization and governments are offering rare financial incentives to companies to build infrastructure, including green energy projects. I think this is a good opportunity. according to Go to press release. (Related: Meet the investors and activists fighting to “depoliticize” America's “radical left” companies)
Larry Fink, our Chairman and CEO, shares his thoughts on our agreement to acquire Global Infrastructure Partners (GIP), which builds the world's leading infrastructure private market investment platform. Click here for details: https://t.co/ruQVkag0GU pic.twitter.com/MdZDtAwgd8
— BlackRock (@BlackRock) January 12, 2024
“We believe the next 10 years are going to be important for infrastructure,” BlackRock CEO Larry Fink said during an earnings call Friday morning. according to Go to Yahoo Finance. “If we’re going to decarbonize the world… we’re going to need a lot of capital and infrastructure.”
Martin Small, BlackRock's chief financial officer, said rising government deficits are increasing demand for private financing for large-scale infrastructure projects, and subsidies can help make these investments more attractive. He said that he is fulfilling his role. according to In the Wall Street Journal.
The investment fund, which prioritizes sustainability goals, posted a $2.7 billion loss in the third quarter of 2023, closing earlier than it opened in the same period. according to To Morning Star. Mr. Fink said in June that he would no longer use the term “ESG” because of its political connotations. according to To Axios.
According to Yahoo Finance, Fink did not mention ESG during the approximately 90-minute earnings conference. The deal is likely to close in the third quarter of 2024, according to a press release.
“With many structural changes reshaping the global economy, infrastructure represents one of the most exciting long-term investment opportunities,” Fink said. “We believe the expansion of both physical and digital infrastructure will continue to accelerate as governments prioritize self-sufficiency and security through increasing domestic industrial capacity, energy independence, and onshoring or nearshoring critical sectors. Policymakers are just beginning to introduce once-in-a-generation financial incentives for new infrastructure technologies and projects.”
BlackRock and Global Infrastructure Partners did not immediately respond to requests for comment from the Daily Caller News Foundation.
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