ALLETE Set to Go Private in $6.2 Billion Deal After Final Approval
The utility's acquisition by Canada Pension Plan Investment Board and Global Infrastructure Partners is expected to close December 15 after receiving the green light from Minnesota regulators.
ALLETE Inc. (ALE) is poised to be taken private after receiving the final regulatory green light for its acquisition by a consortium of Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP). The Minnesota Public Utilities Commission (MPUC) issued its written order of approval, clearing the last major hurdle for the $6.2 billion transaction.
In a confirmation that removes months of uncertainty for investors, the company announced that the deal is now expected to close on or around December 15, 2025. The news sent shares of the Duluth-based utility trading near their 52-week high, signaling the market's confidence in the deal's completion.
Under the terms of the agreement, which was first announced in May 2024, ALLETE shareholders will receive $67.00 in cash for each share they own. The total enterprise value of the deal is approximately $6.2 billion, which includes the assumption of ALLETE's debt. This represents a significant premium for the utility and provides a clear cash payout for its investors.
The final approval from the MPUC was the culmination of a multi-stage regulatory review process that is standard for utility acquisitions. Gaining the assent of the state commission, which oversees Minnesota Power, ALLETE's primary subsidiary, was the most critical step in finalizing the transaction.
Shares of ALLETE traded at $67.85 in Tuesday's session, a level slightly above the offer price, reflecting the deal's certainty and final trading dynamics. The stock is at the peak of its 52-week range of $62.18 to $67.71, with the acquisition providing a firm ceiling for its valuation. The company currently has a market capitalization of approximately $3.92 billion.
ALLETE, a diversified energy company, is an attractive asset for infrastructure investors due to its stable, regulated utility operations through Minnesota Power and its growing portfolio of renewable energy projects. According to a company press release, the new owners are committed to the company’s long-term strategy, including its sustainability and clean-energy goals.
The acquisition by CPP Investments and GIP, two of the world's largest and most experienced infrastructure investors, is a strategic move to secure stable, long-term returns. Regulated utilities are prized for their predictable revenue streams and essential service models. For ALLETE, the transition to private ownership will provide access to substantial private capital to fund its ambitious clean-energy transition and grid modernization efforts without the pressures of the public equity markets.
With the closing date just days away, the acquisition marks the end of ALLETE's decades-long history as a publicly traded company and begins a new chapter under private ownership, which a new focus on long-term infrastructure and sustainable energy investment.