Minnesota Approves $6.2B Allete Sale to BlackRock, CPPIB

The five-member Minnesota Public Utilities Commission unanimously approved the $6.2 billion takeover of Allete, parent of Duluth-based Minnesota Power, by the Canada Pension Plan Investment Board and BlackRock’s Global Infrastructure Partners at $67 a share, assuming about $2.3 billion of debt. The decision came despite an administrative law judge’s nonbinding recommendation to reject the deal and an objection from the Minnesota attorney general, and followed the transaction’s May 2024 announcement. Critics — including consumer and environmental groups and major industrial customers — warned private-equity ownership could raise rates or favor BlackRock-linked interests, and opponents also cited rising electricity bills and growing data-center demand in the region, including a potential Google site. Supporters such as the Minnesota Department of Commerce, some unions and some clean-energy and consumer groups said going private will speed access to capital for reliability and the clean-energy transition. Commissioners said conditions attached to the approval and ongoing regulatory oversight will protect ratepayers and ensure acquisition costs are not passed to customers. The new ownership group committed to maintaining employment and keeping Allete’s headquarters in Duluth while investing in wind, solar and battery projects to comply with state carbon-free laws.