- Blackstone will acquire TXNM Energy for $11.5 billion, including debt, betting on rising U.S. electricity demand and clean energy growth.
- TXNM will use the investment to expand and modernise its grid; CEO Pat Collawn will step down after the deal closes in 2026.
Blackstone Infrastructure has announced it will acquire utility company TXNM Energy in an $11.5 billion all-cash deal, including debt, as it capitalises on surging U.S. electricity demand and the ongoing transition to cleaner energy sources.
TXNM shares jumped 9.2% to $57.75 in premarket trading after the New Mexico-based utility confirmed the acquisition on Monday, May 19. Blackstone will pay $61.25 per share, representing a premium of nearly 15% over TXNM’s last closing price, according to LSEG data.
The acquisition underscores growing investor interest in U.S. utilities. National power demand is projected to hit record highs in 2025. Rising energy consumption from artificial intelligence and cryptocurrency data centres, and increased residential and commercial use, has accelerated infrastructure investment across the sector.
Just last week, NRG Energy announced a $12 billion deal to acquire power generation assets from LS Power. Earlier this year, KKR and PSP Investments purchased a 20% stake in American Electric Power’s transmission network for $2.82 billion.
Blackstone, which manages $60 billion in infrastructure assets, views TXNM as a strategic fit, citing the utility’s regulated returns and capital-intensive grid modernisation needs. The firm aims to support TXNM’s clean energy ambitions while helping the utility meet growing electricity demand and maintain grid stability.
TXNM Energy, which serves around 800,000 homes and businesses in New Mexico and Texas, expects to raise an additional $400 million in equity before the Blackstone deal closes. The utility confirmed that Chief Executive Pat Collawn will retire once the transaction completes, expected in the second half of 2026. Current executive Don Tarry will step into the CEO role following her departure.