Private equity firm Blackstone Infrastructure is investing $11.5 billion in TXNM Energy, a New Mexico-based utility company, in a deal that values the firm at $61.25 per share. The acquisition, which includes debt, represents about 15% premium to the stock’s last close and has sent shares soaring 8.3%. Blackstone is betting on rising US electricity demand driven by growing AI and cryptocurrency data centers, as well as increased residential and commercial consumption.
The deal marks one of the largest investments in a utility company this year, following NRG Energy’s acquisition of energy infrastructure firm LS Power’s power generation assets for $12 billion. Blackstone sees long-term potential in TXNM due to its stable returns and high capital needs for grid modernization.
However, regulators must still approve the deal, which requires clearance from six regulators including New Mexico Public Regulation Commission (NMPRC). Analysts note that while investor focus is on the successful completion of the deal, they see a “clear pathway” for approval. This comes after Iberdrola’s US unit Avangrid terminated its acquisition of PNM Resources last year due to regulatory hurdles. TXNM Energy serves 800,000 homes and businesses in New Mexico and Texas.
Source: https://www.reuters.com/business/energy/blackstone-acquire-txnm-energy-115-billion-deal-2025-05-19