ALLETE, Inc. (NYSE: ALE) closed its $6.2 billion acquisition by Canada Pension Plan Investments and Global Infrastructure Partners on December 15, 2025, purchasing all outstanding common shares at $67 in cash. The transaction, which included the assumption of debt, marked the end of ALLETE’s public listing and transferred ownership to the two private‑equity owners.
The Minnesota Public Utilities Commission approved the deal on October 3, 2025, and issued a written order on December 11, 2025. The commission’s approval unlocked a package of customer benefits totaling roughly $200 million for Minnesota Power customers, including a one‑year base‑rate freeze, $50 million in rate credits, and additional support for energy‑affordability and innovation initiatives.
ALLETE’s Q3 2025 earnings reflected a sharp decline from the prior year: earnings per share fell to $0.46 from $0.78, and net income dropped to $27.1 million from $45.0 million. Management attributed the downturn to lower industrial sales at Minnesota Power, inflationary pressures, and reduced revenue from renewable‑project sales. The company’s regulated‑operations segment saw net income slip to $32.5 million from $34.0 million year‑over‑year, while the clean‑energy division posted a $3.6 million loss versus a $3.9 million profit in 2024.
Segment performance highlights that the regulated utilities—Minnesota Power and Superior Water, Light and Power—continued to operate under existing regulatory frameworks, but the decline in industrial sales and higher input costs compressed margins. The clean‑energy arm’s loss underscores the challenges of scaling renewable projects amid volatile commodity prices and the need for additional capital to accelerate the clean‑energy transition.
CEO Bethany Owen emphasized that the acquisition “strengthens ALLETE’s ability to advance infrastructure investments, ensure a reliable grid, and achieve state clean‑energy goals while preserving local leadership.” She noted that the new owners will fund a five‑year capital‑investment plan focused on grid modernization and clean‑energy projects, positioning ALLETE to meet Minnesota’s 2040 carbon‑free target.
The transaction provides a critical capital infusion that will enable ALLETE to accelerate its sustainability agenda, support long‑term rate stability for customers, and maintain local management and headquarters in Duluth. The deal also signals confidence from major institutional investors in the company’s long‑term growth prospects in a regulated utility environment.
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