Blackstone’s bombshell $5.7 billion acquisition of TXNM Energy has the industry buzzing. The deal, valuing shares at $61.25 each with a hefty premium, dwarfs Avangrid’s previous failed attempt by $3 billion. Blackstone’s showing they mean business, pledging $400 million in additional investment and promising no job cuts. Their careful approach to regulatory approval and commitment to clean energy suggests they’ve learned from others’ mistakes. The real story? It’s just beginning.
Infrastructure giant Blackstone is making a bold grab for power in the Southwest, agreeing to buy TXNM Energy for $5.7 billion in cash. The deal, valuing shares at $61.25 each, comes with a hefty 16-23% premium that’s turning heads across the industry. Talk about throwing money around – the total enterprise value hits a whopping $11.5 billion when you factor in debt and preferred stock.
Blackstone flexes its financial muscle in a massive $5.7 billion power play, swooping in to snatch TXNM Energy for a premium price.
This isn’t Blackstone’s first rodeo in the power sector. They’re already managing $60 billion in infrastructure assets, mostly in North America. And now they’re doubling down, pumping an additional $400 million into TXNM before the deal even closes by snatching up 8 million new shares at $50 a pop. The market responded enthusiastically with TXNM shares jumping 9.2% premarket.
The timing is interesting, considering Avangrid‘s spectacular face-plant trying to buy TXNM just months ago. But Blackstone’s coming in with deeper pockets and, apparently, better homework. They’re promising to keep things local – no job cuts, same headquarters, same union deals. Smart move, considering how New Mexico regulators torpedoed the last deal.
Local control isn’t the only carrot they’re dangling. Blackstone’s promising to support TXNM’s clean energy conversion and infrastructure modernization. They’re even working on a special benefits package for customers in both states. Because nothing says “please approve our merger” quite like community perks. Don Tarry will take the helm as President and CEO after the deal closes.
The real kicker? This deal’s about $3 billion richer than Avangrid’s failed attempt. Blackstone clearly learned from their predecessor’s mistakes, emphasizing stakeholder engagement and community benefits right out of the gate. They’re not taking any chances with those pesky regulators this time around.
The whole thing’s set to wrap up in 2026, assuming all the regulatory dominoes fall into place. With TXNM’s sprawling customer base across New Mexico and Texas, there’s a lot at stake. One thing’s for sure – Blackstone’s not just dipping their toes in the Southwest’s energy waters. They’re diving in headfirst.
