Minnesota power regulators approved a $6.2 billion deal for BlackRock unit and Canada Pension Plan to buy Allete, parent of Minnesota Power. The commission’s 5-0 vote addressed concerns about rates and clean-power investments. Recent modifications to the deal reassured investors about the acquisition.

BlackRock’s Global Infrastructure Partners unit, which recently bought AES, is in talks to buy a data center business backed by Macquarie. The Minnesota deal will help Allete transition to clean energy sources, according to company executives. Opponents, including Sierra Club, raised concerns about potential rate hikes and meeting clean energy requirements.

Commissioners noted recent modifications to the deal eased their skepticism. The changes will provide benefits worth up to $258 million for utility stakeholders, including a clean technology fund and bill credits for consumers. Chair Katie Sieben emphasized the need for new investments for projects like bringing in hydropower from Manitoba.

Leaders of BlackRock and Canada Pension Plan praised the regulatory approval for the transition, expected to close in late 2025. Global Infrastructure Partners’ Jonathan Bram highlighted the commitment to providing safe, reliable, and affordable energy with a focus on carbon-free solutions. However, critics, including Private Equity Stakeholder Project and Sierra Club, remain concerned about rates and funding for cleaner energy.

Read more at Yahoo Finance: BlackRock’s infrastructure play gets a boost as Minnesota approves buyout