Blackstone Infrastructure announced a settlement with Texas‑New Mexico Power Company (TNMP), the Texas subsidiary of TXNM Energy, to acquire all outstanding common stock of TXNM. The settlement, which clears the regulatory path, was approved by the Public Utility Commission of Texas and led to the cancellation of the PUCT hearings that had been scheduled for that day.
The transaction values TXNM at an enterprise value of $11.5 billion, including net debt, and an equity value of $5.7 billion. The settlement includes a $45.5 million rate credit that will be distributed to TNMP customers over 48 months, a commitment that addresses key regulatory concerns and protects the utility’s customer base.
The agreement also requires Blackstone to maintain the existing workforce and limits the amount of acquisition‑related debt that can be taken on, further assuaging regulatory and public‑interest objections. These provisions demonstrate Blackstone’s willingness to balance its investment objectives with the obligations that come with owning a regulated utility.
TXNM Energy operates two regulated utilities—TNMP in Texas and Public Service Company of New Mexico—serving more than 800,000 customers across both states. The acquisition expands Blackstone’s footprint in the energy sector and aligns with its broader strategy of investing in stable, long‑term infrastructure assets that generate predictable cash flows.
The settlement follows a history of regulatory scrutiny for TXNM, including the 2020 rejection of its proposed merger with Avangrid by New Mexico regulators. By addressing workforce and rate‑credit concerns, the deal mitigates the regulatory risks that previously slowed the transaction’s progress.
With the regulatory path cleared, Blackstone can move forward with the acquisition, positioning its infrastructure portfolio to benefit from the steady revenue stream of a regulated utility while maintaining a commitment to customer protection and workforce stability.
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