Blackstone Infrastructure Partners is in advanced talks to acquire TXNM Energy, the largest electric utility in New Mexico, in a potential $11.2bn transaction, including debt, according to sources cited by Bloomberg.

The deal would represent a major bet on the US utilities sector, which is seeing growing interest from infrastructure investors amid a surge in energy demand driven by data centre expansion, industrial growth, and the electrification of transport and buildings.

TXNM Energy – formerly PNM Resources – serves more than 800,000 customers across New Mexico and Texas. The company currently has a market capitalisation of around $5bn.

Negotiations are ongoing, and while a formal agreement could be reached in the coming weeks, the outcome remains subject to regulatory review and broader market conditions.

This is not the first time TXNM has been involved in a large-scale acquisition effort. In 2020, Spanish utility Iberdrola’s US subsidiary Avangrid agreed to acquire the business in a $4.3bn deal, which was later blocked by New Mexico regulators on public interest grounds. The company has since evaluated other strategic options and was previously reported to have attracted interest from KKR.

The potential deal comes amid a wave of consolidation in the US power sector. Earlier this week, NRG Energy announced a $12bn acquisition of LS Power’s gas generation and demand response platform CPower. In January, Constellation Energy Corp. agreed to acquire Calpine Corp. in a $29bn transaction, including debt.

Source: Bloomberg