The US Federal Energy Regulatory Commission (FERC) has cleared BlackRock’s previously announced $12.5bn acquisition of infrastructure fund manager Global Infrastructure Partners (GIP).
Granted authorisation under section 203 of the Federal Power Act, the approval follows BlackRock’s prior blanket authorisation under the same section. This prior authorisation permits BlackRock to hold interests in various load-serving entities (LSEs) and independent power producers (IPPs).
Commissioner Mark Christie said: “BlackRock is now firmly on both sides of the competition fence, as protestors here assert.
“But, because of BlackRock’s blanket authorisation, there is no further scrutiny. Whether an entity with a blanket authorisation is or will be on both sides of the fence should be front and center for serious scrutiny in any next steps taken on the Blanket Authorization Notice of Inquiry.”
Announced earlier this year, BlackRock’s acquisition involves $3bn of cash and about 12 million shares of its common stock.
Through the transaction, BlackRock and GIP aim to create a multi-asset class infrastructure investing platform with combined client assets under management (AUM) of more than $150bn across equity, debt, and solutions.
The combination is expected to create an extensive global infrastructure franchise with differentiated origination and asset management capabilities.
Moreover, the integration of proprietary origination and business improvement capabilities of GIP and BlackRock’s global corporate and sovereign relationships will offer a platform for diversified and large-scale sourcing. This is expected to support deal flow and co-investment opportunities for clients.
Established in 2006, GIP manages more than $100bn in client assets across infrastructure equity and debt, with a focus on energy, transport, water and waste, and digital sectors.
In May this year, BlackRock completed its acquisition of SpiderRock Advisors, an asset management firm in the US wealth market.
SpiderRock Advisors is engaged in providing option overlay-based strategies for separately managed accounts (SMAs).
