Electric Company That Powers A Third Of Minnesota Being Acquired For $6 Billion

This is some pretty big news to wake up to on a Monday morning. A utility company that services a huge portion of Minnesota plans to be acquired by business partners.

Allete Plans To Be Acquired By CCP and GIP For $6.2 Billion

Allete owns Minnesota Power, Superior Water Light An Power, ALLETE Clean Energy, BNI Energy in Bismark, and New Energy Equity in Annapolis. Minnesota Power covers most of Northeast Minnesota.

According to WDIO, that adds up to 150,000 residents, 14 municipalities, and big industrial companies, like the mines on the Iron Range.

Who is CCP & GIP?

CCP stands for Canada Pension Plan Investment Board. The Canadian Government owns it and they have around 590.8 billion in assets.

GIP stands for Global Infrastructure Partners. Their headquarters are in New York.

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Will anything change for customers?

ALLETE says that the company will remain managed by ALLETE out of Duluth. It's business as usual. They say current employees will keep their jobs, and service won't change for customers.

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Why are they being acquired?

ALLETE said this allows them to have access to the capital they need to invest in the clean-energy transition.

When will the acquisition close?

The plan is to close in mid-2025. The ALLETE board members approved the acquisition with a unanimous vote. Now, shareholders will need to approve the acquisition and they will need to get regulatory approvals.