BlackRock is buying infrastructure investor Global Infrastructure Partners for $12 billion

Larry Fink, CEO of BlackRock Inc., gestures during a speech at the Handelsblatt Banking Summit in Frankfurt, Germany, on Wednesday. 4, 2019.

Alex Kraus | Bloomberg | Getty Images

Black stonethe world’s largest asset manager, announced Friday that it is buying Global Infrastructure Partners for about $12 billion in cash and stock.

The acquisition is part of the firm’s increased focus on infrastructure, which CEO Larry Fink said is “one of the most exciting long-term investment opportunities.” As part of the deal, GIP’s management team will lead BlackRock’s combined infrastructure private markets investment platform.

The transaction is expected to close in the third quarter of this year.

BlackRock also announces that it will integrate its ETF and index businesses across the firm by creating a new strategic business, Global Product Solutions.

“This platform is intended to be a leading provider of end-to-end infrastructure solutions for global corporations and the public sector, mobilizing long-term private capital through long-term, strong relationships,” said Bayo Ogunlesi, CEO of GIP.

The firm is also creating a new international business structure that will consolidate its leadership in Europe, the Middle East, India and Asia Pacific.

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