BlackRock, a leading investment management firm, has announced its plans to acquire Global Infrastructure Partners (GIP) in a significant deal estimated to be worth $12.5 billion. This acquisition includes Signature Flight Support, whcich has significant operations at the VC Bird Internatioan Airport, marking a notable expansion in BlackRock’s portfolio.
A critical aspect of this acquisition is the future of GIP’s Rio Grande liquefied natural gas (LNG) export terminal in Texas. The project has recently come under scrutiny, particularly from community activists and tribal groups in Texas. In November 2023, these groups appealed to the Washington State Investment Board (WISB) to halt the terminal’s progress, citing environmental concerns. They argued that the Rio Grande LNG terminal could become a major pollutant in the region, potentially harming the local fishing, shrimping, and nature tourism industries. The activists highlighted that the terminal is projected to produce emissions equivalent to those of 44 coal power plants annually, or around 163 million tonnes of carbon dioxide (CO2).
However, the merger between GIP and BlackRock is set to form a formidable global infrastructure entity, with a combined value of over $150 billion. This new venture aims to offer comprehensive infrastructure expertise, encompassing equity, debt, and solutions, while bringing significant scale to the industry.
Laurence Fink, Chairman and CEO of BlackRock, has expressed his enthusiasm for the infrastructure sector, identifying it as a major long-term investment opportunity. He anticipates an acceleration in the expansion of both physical and digital infrastructure, driven by government priorities around self-sufficiency, security, and the reshoring of critical sectors.
Bayo Ogunlesi, founding partner, Chairman, and CEO of GIP, also commented on the merger, envisioning the new platform as a leading infrastructure solutions provider. The aim is to mobilize long-term private capital for global corporates and the public sector, leveraging the firms’ longstanding relationships.
Established in 2006, GIP is an independent infrastructure investor managing over $100 billion in client assets. Its focus spans various sectors including energy, transport, water and waste, and digital infrastructure.
