FERC Approval Confirms Blackstone’s $11.5 B Acquisition of TXNM Energy

On Friday, 20 February 2026, the U.S. Federal Energy Regulatory Commission (FERC) issued an order authorizing the acquisition of TXNM Energy Inc. (NYSE: TXNM) by Blackstone Infrastructure (NYSE: BX). The transaction, valued at approximately $11.5 billion—including assumed debt—had been announced by Blackstone last year. FERC concluded that the deal is consistent with the public interest, that it will not impair state or federal regulation, and that it will not adversely affect rates or competition.

Key Findings of the FERC Order

  1. Regulatory Impact
  • FERC found no evidence that the transaction will impair either state or federal regulation of the utility.
  • The order noted that the existing state ring‑fencing protections in New Mexico and Texas are adequate, and thus the transaction does not diminish regulatory oversight.
  1. Rate Impact
  • The Commission determined that the acquisition will not have an adverse effect on rates for consumers.
  1. Competitive Effects
  • FERC concluded that the deal will not adversely affect horizontal or vertical competition within the electric utilities sector.
  1. Opposition Addressed
  • FERC rejected objections citing Blackstone’s ownership of data‑center assets and private‑equity ownership of public utilities, affirming that these concerns do not alter the public‑interest assessment.
  1. Hart‑Scott‑Rodino Antitrust Period
  • The waiting period under the Hart‑Scott‑Rodino Antitrust Improvements Act has expired, allowing the transaction to proceed without antitrust hold‑up.

Market Reaction

  • Stock Performance

  • TXNM’s share price closed at $59.05 on 19 February 2026, close to its 52‑week high of $59.52 set on 11 February 2026.

  • The market cap of TXNM is approximately $6.43 billion, and its price‑earnings ratio stands at 32.25.

  • Investor Sentiment

  • The approval was welcomed by investors, as it removes a key regulatory hurdle and confirms the viability of the deal.

  • The acquisition is expected to provide TXNM with additional capital for investments in renewable energy, a point highlighted by the company’s management.

Despite the regulatory clearance, the acquisition remains contentious in New Mexico. Attorney General Raúl Torrez has called for a thorough review of the sale, asserting that a prior $400 million stock transaction by a Blackstone‑owned entity may have violated state law. He emphasized that all utility mergers must receive regulatory approval to protect consumers’ electric bills. The New Mexico Department of Justice is actively monitoring the transaction to ensure compliance with state statutes.

Company Overview

TXNM Energy Inc. is a subsidiary of PNM Resources Inc., a holding company that generates, transmits, and distributes electricity primarily in New Mexico. PNM operates through several subsidiaries and serves customers across the state. The company is listed on the New York Stock Exchange and has a website at www.pnm.com .

Conclusion

The FERC authorization marks a decisive step in Blackstone’s strategy to acquire and potentially transform TXNM Energy. While regulatory approval clears a major obstacle, legal scrutiny and public opinion in New Mexico remain significant factors that could influence the final integration of the utility into Blackstone’s portfolio.