KKR is partnering with the Public Sector Pension Investment Board to buy a 19.9% interest in two units of American Electric Power for $2.82 billion.

American Electric Power Co. agreed to sell a minority stake in its transmission business to KKR & Co. and Canada’s PSP Investments for $2.8 billion. Most Read from BloombergWhat Robotaxis Brought San FranciscoNYC Condo Owners May Bear Costs of Landmark Green Building LawNYC’s Subway Violence Deters Drive to Bring Workers Back to OfficeDutch Central Bank Restores Amsterdam’s ‘Ugliest Building’Can American Drivers Learn to Love Roundabouts?

American Electric Power Co. has agreed to sell a stake in its transmission business to a strategic partnership between KKR and PSP Investments, the energy company reported.

KKR (KKR) said Thursday it formed a 50/50 strategic partnership with Canada's PSP Investments to acquire 19.9% stakes in American Electric Power's (NASDAQ:AEP) Ohio and Indiana transmission company, as well as its Michigan transmission company,

Today, investment funds managed by KKR, a leading global investment firm, and the Public Sector Pension Investment Board ("PSP Investments"), one of Canada’s largest pension investors, announced an agreement to acquire a 19.