The sale of ALLETE, the parent company of Minnesota Power, to private equity firms Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPP Investments) has officially closed. Under the transaction, GIP will indirectly own a 60% stake in the company, while CPP Investments will hold the remaining 40%.
ALLETE Chair, President and CEO Bethany Owen said the transaction marks a new chapter for the company, strengthening its ability to advance infrastructure investments, ensure grid reliability, and support Minnesota’s clean-energy goals while maintaining its local leadership and community-focused legacy. She also noted that regulatory approval from the Minnesota Public Utilities Commission (MPUC) and collaboration with state agencies and community partners helped shape an agreement delivering long-term benefits to customers and communities.
GIP, which is owned by BlackRock, joins CPP Investments, one of the world’s largest global pension investors, as ALLETE’s new owners. The transaction received MPUC approval in October despite objections from environmental groups and major industrial customers, including UPM Blandin and U.S. Steel.
As part of the approved agreement, Minnesota Power will implement a one-year rate freeze and distribute $50 million in rate credits to customers over the next seven years. The company will also remain headquartered in Duluth and is required to meet clean-energy fund investment commitments over the next five years.
Trading of ALLETE shares was suspended when the New York Stock Exchange opened on Monday, with shareholders set to receive $67 per share in cash.
Source: KAXE
