AES Corp. Surges 14% Amid Takeover Buzz and Sale Talks

AES Corp shares surged 14% in after-hours trading after Bloomberg reported the utility company is exploring strategic options, including a potential sale. The move comes amid growing takeover interest from large private equity and infrastructure firms, drawn by AES's discounted renewable energy portfolio and long-term growth pipeline. The company's current market cap is around $8 billion, but its enterprise value stands closer to $36 billion, reflecting $30 billion in debt and nearly $2 billion in cash.

AES Corp (NYSE:AES) shares surged 14% in after-hours trading on Tuesday, July 2, 2025, following a Bloomberg report that the utility company is exploring strategic options, including a potential sale. The move comes amid growing takeover interest from large private equity and infrastructure firms, drawn by AES's discounted renewable energy portfolio and long-term growth pipeline [1].

The company's current market cap is around $8 billion, but its enterprise value stands closer to $36 billion, reflecting $30 billion in debt and nearly $2 billion in cash. AES owns a fleet of renewable power assets, including wind and solar, as well as two utilities in Indiana and Ohio. The company aims to provide renewable power to data center companies and has signed deals with technology customers including Google, Microsoft, and Amazon.com Inc. [2].

The surge in AES shares follows a significant decline over the past two years, with the stock losing about half its value. The company's stock has fallen 38% over the past 12 months, compared with over 18% gains in the S&P 500 Utilities sector. This decline has been attributed to anti-renewable policies put in place by the Trump administration, including permitting restrictions, higher tariffs, and a rapid phaseout of clean energy credits as part of his budget bill [3].

Investors are betting that the immense computing power needed for artificial intelligence and cryptocurrency mining will fuel demand for companies that can help provide it, driving dealmaking across the sector. This year, Blackstone Inc. has agreed to take TXNM Energy Inc. private for about $11.8 billion, and Constellation Energy Corp. reached a deal to buy Calpine Corp. for $16.4 billion [2].

While AES has reduced its international scope and pivoted toward developing mostly renewable energy, its sprawling operations and ownership of both utilities and power plants make it challenging for the company to sell a simple investment story, compared with peers in the US power sector [3].

There is no certainty that any of the suitors will decide to pursue a deal for AES. However, the potential sale of AES would be one of the biggest deals in the power industry this year. A takeover of AES will be one of the biggest deals in the power industry this year [2].

References:
[1] https://seekingalpha.com/news/4466015-aes-explores-options-as-takeover-interest-rises-bloomberg
[2] https://stocktwits.com/news-articles/markets/equity/aes-stock-sparkles-in-after-hours-trading-on-buzz-of-possible-sale/chFUj2DR5hQ
[3] https://www.bloomberg.com/news/articles/2025-07-08/power-firm-aes-explores-options-amid-takeover-interest