InforCapital
M&A Transaction•

Duke Energy Sells 19.7% Stake in Florida Unit for $6B - InforCapital

Brookfield acquires 19.7% of Duke Energy Florida for $6B, backing a capital plan now totaling $87B to meet surging energy demand.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Energy Infrastructure & Renewables.
  • Geography: United States.

Analysis

Charlotte, North Carolina – August 5, 2025 – Duke Energy (NYSE: DUK) has entered a definitive agreement with Brookfield Asset Management for a $6 billion investment in Duke Energy Florida, acquiring a 19.7% non-controlling equity interest through Brookfield’s Super-Core Infrastructure strategy.

This all-cash transaction boosts Duke Energy’s total five-year capital plan to $87 billion, with $4 billion specifically earmarked for expansion in Florida. The remaining $2 billion from the proceeds will be used to reduce Duke’s holding company debt, enhancing its balance sheet strength and supporting a long-term adjusted FFO-to-Debt target increase to 15%.

Brookfield’s phased investment will begin with $2.8 billion in early 2026, $200 million by the end of 2026, $2 billion in 2027, and $1 billion in 2028—although Brookfield reserves the right to accelerate full funding. Duke Energy retains 80.3% ownership and remains the operator of Duke Energy Florida (DEF), ensuring no disruption to the existing leadership, workforce, or day-to-day operations.

Brookfield, which manages over $1 trillion in assets, brings deep infrastructure expertise to the partnership. “This transaction underscores our strategy of investing in essential infrastructure that drives stable, long-term cash flows,” said Sam Pollock, CEO of Brookfield’s Infrastructure Group.

Duke Energy Florida provides electric services to over 2 million customers across central and western Florida. The capital injection will enable DEF to continue its grid modernization, resiliency upgrades, and generation capacity improvements to meet rising demand in one of the U.S.’s fastest-growing utility markets.

“We are thrilled to welcome Brookfield as a long-term partner,” said Harry Sideris, CEO of Duke Energy Florida. “This transaction supports our ongoing mission to deliver reliable, affordable and sustainable energy to Florida’s communities as they experience record growth.”

Surging Infrastructure Investment in 2025

Brookfield’s investment adds to a surge in infrastructure capital deployment in 2025, as utilities seek alternative funding methods to support decarbonization and modernization:

  • NextEra Energy recently partnered with KKR for a $5.4 billion minority stake sale in its Florida transmission assets.
  • National Grid sold a 40% stake in its UK gas transmission business to Macquarie and BCI for over $12 billion.
  • Enel spun off a portion of its Latin American renewable assets into a joint venture with Brookfield for $4.5 billion in June 2025.
  • Southern Company raised $3.8 billion through a partial divestment of its Alabama-based grid expansion entity to BlackRock’s Climate Infrastructure fund.

These strategic minority investments help utilities de-risk capital programs while maintaining operational control and alignment with long-term regulatory strategies.

The Duke-Brookfield deal is subject to regulatory approvals, including clearance from the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the United States (CFIUS), and review by the Nuclear Regulatory Commission.

J.P. Morgan Securities LLC advised Duke Energy, with legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP. Brookfield was advised by RBC Capital Markets and Kirkland & Ellis LLP.

With this landmark transaction, Duke Energy bolsters its financial position while maintaining its long-term growth outlook of 5% to 7% EPS through 2029. The company continues to lead America’s energy transition with investments in renewables, nuclear, natural gas and grid storage, while balancing reliability, cost, and environmental goals across its multi-state footprint.