In a groundbreaking move, BlackRock, the world's largest asset manager, is set to acquire Global Infrastructure Partners (GIP) for a staggering $12.5 billion. The cash-and-stock deal, orchestrated by legal heavyweights Skadden Arps Slate Meagher & Flom LLP and Fried Frank Harris Shriver & Jacobson LLP, aims to establish the pinnacle of infrastructure investment, shaping what the companies boldly proclaim as "the world's premier infrastructure investment firm."

Skadden and Fried Frank Guide BlackRock On $12.5B GIP Buy : BlackRock's Ambitious Leap

In an era defined by transformative global shifts, BlackRock is strategically positioning itself for unparalleled success in the long-term infrastructure investment realm. The acquisition, guided by legal luminaries Skadden and Fried Frank, is designed to tap into the burgeoning opportunities arising from the reshaping of the global economy.

The Strategic Legal Minds

Representing BlackRock, Skadden Arps Slate Meagher & Flom LLP boasts a stellar team, led by M&A partners David Hepp, Matthew Collin, and Patrick Lewis. Their legal prowess is complemented by a formidable lineup, including tax partner Victor Hollender, antitrust partner Kenneth Schwartz, and U.S. Securities and Exchange Commission reporting and compliance partner Brian Breheny.

Fried Frank Harris Shriver & Jacobson LLP's asset management team, under the leadership of partners Jonathan Adler and Kate Downey, further fortifies BlackRock's legal arsenal, ensuring a seamless execution of the acquisition strategy.

Skadden and Fried Frank Guide BlackRock On $12.5B GIP Buy : GIP's Stalwart Leadership

Founded in 2006, GIP, with over $100 billion in client assets, is a formidable force in infrastructure equity and debt management. The deal stipulates that BlackRock will acquire 100% of GIP's business and assets for $3 billion in cash and 12 million shares of BlackRock common stock.

The Global Landscape of Infrastructure Investment

The merger between BlackRock and GIP positions the conglomerate as the largest independent infrastructure manager globally, managing over $150 billion in client assets across equity, debt, and solutions. With a focus on energy, transport, water and waste, and digital sectors, the combined entity is poised to reshape the infrastructure investment landscape.

Skadden and Fried Frank Guide BlackRock On $12.5B GIP Buy : Financing the Future

To fund the cash payment, BlackRock plans to leverage $3 billion in debt, with approximately 30% of the total consideration deferred and expected to be issued in about five years, providing a unique financial structure to the deal.

The Legal Maestros Behind GIP

Kirkland & Ellis LLP, representing GIP, marshals a powerhouse team led by asset management M&A partners Daniel Lavon-Krein and Christopher Gandia. Their collaborative effort includes corporate partners Melissa Kalka, Andy Calder, Doug Bacon, Stephen Noh, Kate Willson, and Rami Totari, with support from capital markets partner Julian Seiguer and tax partners Stephen Butler and Joseph Tootle.

Debevoise & Plimpton LLP, a stalwart in the legal arena, contributes its expertise to GIP's representation, with a team led by tax partner Peter Schuur and investment management partner Alisa Waxman.

The Unveiling Timeline

The transaction is slated to close in the third quarter, heralding a new chapter for the infrastructure investment sector. Perella Weinberg Partners and Evercore, serving as lead financial advisers to BlackRock and GIP respectively, further underscore the magnitude of this historic deal.

In a joint statement, Laurence D. Fink, BlackRock's CEO and chair, and Bayo Ogunlesi, GIP's chair and CEO, express their conviction that this collaboration will create the preeminent infrastructure investment firm, catering to global corporates and the public sector.