Blackstone’s infrastructure arm has agreed to acquire regulated US utility TXNM Energy in a $5.7bn all-cash transaction, marking the latest major move in a rapidly accelerating wave of dealmaking across the US power sector, according to a report by Bloomberg.
The deal values TXNM at $61.25 per share and reflects a total enterprise value of $11.5bn, including net debt. TXNM – formerly PNM Resources – operates two utilities serving over 800,000 homes and businesses in New Mexico and Texas.
The transaction underscores growing private equity interest in regulated utilities, which offer predictable, long-term cash flows amid surging demand for electricity driven by the expansion of data centres, manufacturing, and broad-based electrification.
“This is very much part and parcel of the same trend,” said Raymond James analyst Pavel Molchanov. “If anything, private equity prefers the utility model because it’s regulated and more predictable from a profitability standpoint.”
The deal was struck through Blackstone Infrastructure Partners, which manages around $60bn in assets across energy, digital infrastructure, and transportation. The firm said TXNM will remain locally managed and headquartered in New Mexico and Texas, with customer rates continuing to be set by state regulators.
Notably, the agreement comes after New Mexico regulators blocked a previous takeover attempt by Spain’s Iberdrola (via its US arm, Avangrid) in 2020. Analysts at Jefferies and Scotiabank believe the Blackstone deal has a clearer regulatory path, helped by improved state relations and a more collaborative approach from TXNM.
“We likely won’t file [with regulators] for ninety days,” TXNM CEO Don Tarry told investors, signalling a shift toward early engagement with stakeholders and intervenors.
The deal is subject to approvals from six different federal and state agencies. Blackstone has stated that it does not plan to increase TXNM’s leverage levels to finance the acquisition.
Blackstone’s move adds to a string of recent mega-deals in the US power sector. Just last week, NRG Energy agreed to acquire a gas-fired plant portfolio for $12bn, Vistra Corp. bought seven gas assets for $1.9bn, and Constellation Energy announced a $16.4bn takeover of private power giant Calpine.
Shares in TXNM rose as much as 8.3% on the announcement to $57.29 in New York trading.
