BlackRock, Inc. (NYSE: BLK) has completed its acquisition of Global Infrastructure Partners (GIP) for a total consideration of $17 billion (US$3 billion in cash and approximately 12 million shares of BlackRock common stock). This strategic move positions BlackRock to capitalize on the rapidly growing $1.4 trillion (US$1 trillion) infrastructure market, expected to expand significantly due to increased demand for digital and traditional infrastructure and the shift towards decarbonization globally.

The transaction integrates GIP’s robust infrastructure investment platform, which manages over $136 billion (US$100 billion) across various sectors, with BlackRock's extensive infrastructure offerings. The merger creates a formidable global infrastructure entity with over $205 billion (US$150 billion) in combined assets under management, offering comprehensive solutions across equity, debt, and other investment structures. This combination enhances BlackRock's ability to source and manage large-scale infrastructure investments through a blend of GIP’s proprietary operational strategies and BlackRock’s vast corporate and sovereign relationships.

The deal includes approximately 30% of the total consideration in deferred stock, slated for issuance five years post-closing, contingent on specific conditions. BlackRock funded the cash portion through $4 billion (US$3 billion) in new debt, maintaining its strong credit ratings. The acquisition is expected to slightly boost BlackRock’s earnings per share and operating margins in its first full year.

Perella Weinberg Partners and law firms Skadden, Arps, Slate, Meagher & Flom, along with Fried, Frank, Harris, Shriver & Jacobson LLP, provided legal advice to BlackRock. Evercore, Kirkland & Ellis LLP, and Debevoise & Plimpton LLP advised GIP. The transaction, set for completion in the third quarter of 2024, awaits regulatory approvals and customary closing conditions.