Blackstone Infrastructure Partners has agreed to acquire regulated US utility TXNM Energy in an all-cash deal valued at $5.7bn, as the firm continues to deepen its exposure to the US power sector. Including net debt, the transaction values TXNM at $11.5bn.

TXNM, formerly known as PNM Resources, operates regulated utilities serving more than 800,000 residential and commercial customers across New Mexico and Texas. The deal price of $61.25 per share represents a significant premium and reflects private equity’s growing appetite for regulated utility assets, which provide predictable long-term returns.

“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.”

Blackstone Infrastructure Partners manages approximately $60bn across energy, digital, and transport infrastructure. The firm confirmed that TXNM will retain its local management teams and headquarters, with pricing decisions continuing to be made by state regulators.

This acquisition follows a failed takeover attempt by Spain’s Iberdrola in 2020, which was blocked by New Mexico regulators. Analysts at Jefferies and Scotiabank expect the Blackstone transaction to face fewer obstacles, citing improved relations and a more proactive approach to stakeholder engagement.

“We likely won’t file [with regulators] for ninety days,” TXNM CEO Don Tarry noted, emphasising early engagement with key intervenors. The deal requires approvals from six federal and state bodies and is not expected to increase TXNM’s leverage.

The transaction is the latest in a string of major private equity and strategic moves in the US energy space. It follows NRG Energy’s $12bn acquisition of gas-fired assets, Vistra’s $1.9bn purchase of gas plants, and Constellation Energy’s $16.4bn takeover of Calpine.

Shares in TXNM rose 8.3% following the announcement, closing at $57.29 on the New York Stock Exchange.

Source: Bloomberg

If you think we missed any important news, please do not hesitate to contact us at news@pe-insights.com. 

Can`t stop reading? Read more.