Allete and a partnership led by Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) have announced their entry into a definitive agreement, wherein the partnership will acquire Allete for $67.00 per share in cash, or $6.2 billion, including the assumption of debt.
The merger agreement outlines several commitments by CPP Investments and GIP to align with Allete’s shared purpose, culture, and values, including:
Retaining Workforce: The agreement includes commitments regarding workforce retention, maintaining compensation levels, benefits programs, and honouring union contracts.
Maintaining Current Headquarters and Leadership: Allete’s Minnesota Power and Superior Water, Light and Power (SWL&P) will remain independently operated, locally managed, regulated utilities. Bethany Owen will continue as Chief Executive Officer, and the current management team will lead Allete, with headquarters remaining in Duluth, Minnesota.
Contributing to Community: Allete and its family of businesses, along with the Minnesota Power Foundation, will continue economic and charitable contributions in their service territories.
Additionally, the transaction will uphold existing commitments made by Allete, such as:
Allete’s Clean-Energy Goals: All Allete companies will stay committed to advancing a clean-energy future, including solar, wind, storage, and transmission infrastructure, and achieving carbon-free goals set by the respective states.
Retail or Municipal Rates for Utility Customers: After the acquisition’s close, Minnesota Power and SWL&P will continue to be regulated by the Minnesota Public Utilities Commission (MPUC), the Public Service Commission of Wisconsin (PSCW), and the Federal Energy Regulatory Commission (FERC), with no expected impact on retail or municipal rates for utility customers.
The acquisition, unanimously approved by Allete’s Board of Directors, is anticipated to close in mid-2025, subject to approval by Allete’s shareholders and receipt of regulatory approvals.
