Blackstone Infrastructure Partners, the infrastructure investment arm of Blackstone, is in advanced discussions to acquire TXNM Energy, the owner of New Mexico’s largest utility, according to a report by Bloomberg citing sources familiar with the matter.
TXNM has reportedly emerged as a prime target for Blackstone following the withdrawal of competing bidders. The utility operator, which serves over 800,000 customers across New Mexico and Texas, is currently valued at approximately $11.2bn including debt, with its market capitalisation hovering around $5bn.
While negotiations are ongoing and a formal agreement could materialise in the coming weeks, sources caution that talks remain subject to market conditions and regulatory scrutiny, which could impact the timeline or outcome.
The potential acquisition comes amid heightened investor interest in the US utilities sector, driven by accelerating demand from data centres, industrial expansion, and the broader electrification of buildings and transport.
TXNM, formerly known as PNM Resources , previously agreed to a $4.3bn sale to Avangrid – the US arm of Spain’s Iberdrola SA – in 2020, though that deal was ultimately blocked by New Mexico regulators. The company has since been exploring strategic alternatives and was earlier reported to have drawn interest from KKR.
The development adds to a growing pipeline of large-scale utility transactions in the US. Earlier this week, NRG Energy Inc. announced a $12bn acquisition of LS Power’s natural gas-fired power plants and demand response unit, CPower. In January, Constellation Energy Corp. agreed to acquire Calpine Corp. in a $29bn transaction, including debt.
