The Globe and Mail reports in its Saturday, May 2, edition that Brookfield Corp. is converting its renewable power and infrastructure businesses from limited partnerships to traditional corporate structures to attract more passive investors.
The Globe's Andrew Willis writes that last week, Brookfield Renewable LP Partners and Brookfield Infrastructure Partners LP announced their boards "have recently begun exploring whether a single combined corporate structure would be the best path forward."
Both companies last week, "The goal is to determine if, on a tax-free basis, we can create a single corporate security that would enhance liquidity, increase index inclusion and create value for our investors."
The two entities -- the partnerships and the corporations -- have identical assets, governance and payouts.
However, shares in the corporations trade at a premium to the price of the partnership units.
Bank of Nova Scotia analyst Robert Hope says, "With some investors viewing Brookfield as too complicated, these simplifications could be welcomed by the market longer term."
Last September, Brookfield Corp. announced plans to merge the two entities, with a goal of building their stock market following.
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