GIP and Canada's CPP near deal for utility group Allete, source says (updated)

ALLETE

03/05/2024 02:24

(Changes sourcing, background in paragraph 2 and 5, details
from FT report in paragraph 4)
       May 2 (Reuters) - U.S. investment management company
Global Infrastructure Partners and Canada's pension fund CPP
Investments are nearing a deal to buy clean energy company
Allete  ALE.N , and a deal could be announced soon, a source
familiar with the matter told Reuters. 
    Reuters had reported in December that Allete, a power
utility and energy developer headquartered in Duluth, Minnesota,
was exploring a sale of the company.
    GIP and CPP declined to comment on the FT report, while
Allete did not immediately respond to a Reuters request for
comment. 
    The Financial Times, which had earlier reported the deal,
said it was for around $5 billion. 
    Allete, which operates wind, solar, coal-fired, biomass and
hydroelectric power generation assets across the Upper Midwest,
plans to invest around $3.3 billion in clean energy initiatives
and transmission projects by 2027.

 (Reporting by Anirban Sen in New York and Chandni Shah in
Bengaluru; Editing by Rashmi Aich)
 ((Chandni.shah@thomsonreuters.com;))