The deal promises $200 million in customer relief as Allete exits public markets
Canada Pension Plan Investment Board is moving ahead with another US utilities deal as regulators clear its acquisition of ALLETE, Inc., a Duluth-based power company with a growing clean‑energy footprint.
ALLETE said it has reviewed the written order from the Minnesota Public Utilities Commission approving its sale to Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP), described as two leading global investors in infrastructure and sustainable energy.
The transaction is expected to close on or about December 15, subject to the satisfaction or waiver of remaining closing conditions.
The company said the acquisition aligns with its strategy to support “a stronger, more flexible electric grid and other clean-energy transition investments while safeguarding reliability and reasonable rates for customers.”
It expects approximately $200m in historic benefits for Minnesota Power customers and the regional economy through bill credits, assistance with past-due bills, and economic development opportunities.
ALLETE chair, president and CEO Bethany Owen said the acquisition by GIP and CPP Investments will strengthen ALLETE’s ability to invest in regional transmission infrastructure and renewable and other clean‑energy technologies.
She added that it will help the company meet Minnesota’s energy and environmental goals, including “a carbon-free energy supply by 2040.”
She said ALLETE remains committed to ensuring these investments enhance reliability while “keeping bills as low as possible for customers.”
The deal has already won backing from ALLETE shareholders and several regulators, including the US Federal Energy Regulatory Commission and the Public Service Commission of Wisconsin.
Once the acquisition closes, ALLETE’s common shares will stop trading on the New York Stock Exchange.
Index changes will follow. Corebridge Financial Inc. will replace Allete Inc. in the S&P MidCap 400 effective prior to the open of trading on Wednesday, December 17.
The index provider noted that Canada Pension Plan Investment Board and Global Infrastructure Partners are acquiring Allete in a deal expected to close soon, pending final closing conditions.
Corebridge Financial will join the index under the ticker CRBG in the Financials sector, while Allete, ticker ALE, will be deleted from the Utilities sector on the same effective date.
