Tanay Dhumal
2 min read
By Tanay Dhumal
(Reuters) -Blackstone Infrastructure will acquire utility company TXNM Energy in an $11.5 billion deal, including debt, as the investment firm bets on rising U.S. electricity demand and a shift to cleaner energy sources.
Shares of TXNM rose as much as 8.3% to $57.29, an all-time high, as the all-cash deal from Blackstone valued the New Mexico-based utility at $61.25 per share, representing about 15% premium to the stock's last close, according to LSEG data.
With U.S. power demand projected to reach record levels in 2025, driven by mounting energy needs of AI and cryptocurrency data centers as well as increased residential and commercial consumption, more companies are investing in utilities.
Utility NRG Energy said last week it would acquire some power generation assets from energy infrastructure investment firm LS Power in a deal valued at $12 billion.
Blackstone, which manages $60 billion in infrastructure assets, is betting that stable, regulated returns and high capital needs in grid modernization make TXNM a long-term investment fit.
Jefferies analysts said in a note that although the offer price was better than earlier expectations, it was not the premium for a high-growth company like TXNM.
The Blackstone-TXNM deal, which is expected to close in the second half of 2026, requires approval from six regulators including New Mexico Public Regulation Commission (NMPRC).
The analysts noted that investor focus will be directed towards the successful completion of the deal in view of the Avangrid-PNM Resources deal which was rejected by NMPRC in 2021, but, added that they still saw a "clear pathway for approval" for the present deal.
Last year, Iberdrola's U.S. unit Avangrid terminated the acquisition of PNM Resources because it could not get all the necessary regulatory approvals to close the deal.
NMPRC had said the deal's risks outweighed its promised benefits to state ratepayers.
TXNM Energy provides electricity to 800,000 homes and businesses in New Mexico and Texas, according to its website.
(Reporting by Tanay Dhumal in Bengaluru, Editing by Anil D'Silva, Shinjini Ganguli and Shailesh Kuber)
