Global Infrastructure Partners (GIP), a leading infrastructure investor with over $100 billion in assets under management, has agreed to be acquired by BlackRock for $12.5 billion in cash and stock. BlackRock has committed to paying $3 billion in cash and issuing 12 million of its own shares to GIP’s six founders, including Chair Adebayo Ogunlesi. Of these shares, 7 million will be transferred at the deal’s closing, with an additional 5 million due in five years.
Adebayo Ogunlesi is the Founding Partner, Chairman, and CEO of GIP whose prime assets include Sydney and London Gatwick airports, the Port of Melbourne and the Suez water group, extensive green energy holdings and a stake in a big shale oil pipeline. GIP has over 40 portfolio companies which generate over $75 billion in annual revenue and employ approximately 115,000 people around the world.
BlackRock, Inc. is an American multinational investment company and it is the world’s largest asset manager, with $9.42 trillion in assets as of June 30, 2023.
The new structure will see the GIP management team, led by Adebayo Ogunlesi and four of its founding partners, leading the combined infrastructure platform which includes $50bn Infrastructure business. BlackRock has also agreed to appoint Adebayo Ogunlesi to the Board.
“Investing in infrastructure stands out as an exceptionally compelling long-term opportunity, given the ongoing structural shifts influencing the global economy. We anticipate a heightened pace in the expansion of both physical and digital infrastructure, driven by governments prioritizing self-sufficiency, security through enhanced domestic industrial capacity, energy independence, and the reshoring or near-shoring of critical sectors. Policymakers are initiating unprecedented financial incentives for groundbreaking infrastructure technologies and projects, marking a generational shift,” remarked Laurence D. Fink, BlackRock Chairman and CEO.
Expressing enthusiasm about the collaboration, Fink added, “I am thrilled for the chance to welcome Bayo and the GIP team to BlackRock and am pleased to announce our intention for Bayo to join our Board of Directors post-closing. BlackRock was established 35 years ago on a foundation of profound insights into investment risk and the factors steering investment returns. GIP’s profound understanding of the elements influencing operational efficiency for long-term value creation has positioned them as global leaders in infrastructure investing. The amalgamation of these two entities will establish an infrastructure platform to provide unparalleled investment opportunities for clients worldwide, and we look forward to the promising prospects that lie ahead.”
Adebayo Ogunlesi, GIP Founding Partner, Chairman, and CEO, expressed his excitement about the merger and the prospect of collaborating with Larry and his accomplished team. Ogunlesi highlighted shared values such as a collaborative culture, client focus, commitment to investment partnership, and a pursuit of excellence. He underscored the appeal of private infrastructure investing, which offers stable cash flows, less correlated returns, and a hedge against inflation. Ogunlesi sees the joint platform becoming the foremost provider of infrastructure solutions for global corporations and the public sector, mobilizing long-term private capital through enduring relationships. He stated, “We are confident that together, we can establish the world’s premier infrastructure investment firm.”
