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Brookfield-Owned Clarios Withdraws U.S. IPO Plans

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Clarios International, the car battery manufacturer owned by global investment firm Brookfield, has officially withdrawn its plans for an initial public offering (IPO) in the United States. The company, based in Milwaukee, Wisconsin, made the announcement on Monday but did not provide further details regarding the decision.

Clarios had initially filed for a U.S. IPO in 2021, with plans to raise up to $1.85 billion and achieve a valuation of approximately $11 billion. However, the company postponed its offering that same year due to market volatility and macroeconomic challenges, citing the need to reassess market conditions.

The decision to withdraw the IPO comes despite an increase in U.S. IPO activity, driven by a bullish equities market and the anticipation of business-friendly policies under the incoming Trump administration. Despite this, Clarios, which produces batteries used in vehicles globally, including in one-third of all cars on the road, decided against moving forward with its public listing at this time.

Brookfield acquired Clarios in 2019 for $13.2 billion, including debt, as part of a major acquisition from Johnson Controls International.

 

Brookfield Seeks Partner for Ascenty Amid Brazil’s Booming Data Center Market

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Brookfield Asset Management is reportedly looking for an investment bank to advise on the sale of a minority stake in Ascenty, a major data center operator in Latin America. This move comes as Brookfield, in partnership with Digital Realty, aims to attract a minority partner to fund Ascenty’s ongoing expansion, particularly in Brazil. The companies have approached local banks, such as Itaú BBA and Bradesco BBI, for the advisory role.

Ascenty’s growth plans align with Brazil’s rising status as a key global data center hub. Demand for cloud computing and artificial intelligence is driving substantial investments, with estimates suggesting that over $10 billion could be funneled into Brazil’s data center sector over the next decade. Despite having fewer than 200 data centers, Brazil already ranks among the top 15 global markets. A report by Santander projected a 7.1% annual revenue increase for the sector from 2024 to 2028, outpacing the global average.

Brookfield initiated discussions with potential banks in 2024, aiming to complete the sale by the end of 2025. Founded in 2010, Ascenty currently operates or is constructing 34 data centers across Brazil, Mexico, Chile, and Colombia. These facilities are connected by an extensive 5,000-kilometer fiber-optic network. Although the valuation of Ascenty remains uncertain, its rapid expansion since Brookfield and Digital Realty’s $1.8 billion acquisition in 2018 indicates significant growth.

Ascenty’s expansion in Brazil is facilitated by the country’s availability of land, solid global connectivity, and an increasing renewable energy capacity, which makes it an attractive location for future data center investments. While competitors like Tecto Data Centers, Equinix, and ODATA are active in the region, Brazil’s potential for data center growth remains high, especially as energy constraints challenge other markets like the U.S. and Europe.

Market projections suggest Brazil’s energy load from data centers could increase substantially over the next decade, highlighting both the opportunities and challenges in expanding the country’s infrastructure to meet this demand. Official estimates suggest data center energy demand could rise to 9 GW by 2035, a massive increase from the current load of 671 MW, necessitating careful planning in transmission and distribution networks.