M&A News: TXNM Stock Charges 7% Higher as PE Giant Blackstone Plugs in With $11.5B Acquisition

Shares in utility company TXNM Energy (TXNM) charged 7% higher today after it was bought by private equity giant Blackstone Group (BX) for $11.5 billion.

Surging Electricity Demand

Blackstone, whose shares were down 2.3% in pre-market trading, said its Blackstone Infrastructure division which invests across energy, transportation, digital infrastructure and water and waste infrastructure sectors had secured the all-cash deal.

It is understood to have made the move to capitalize on surging electricity demand in the U.S. boosted not just from households and businesses, but the growth in energy-hungry AI and cryptocurrency data centers.

There is also the continued shift, despite the “Drill, Baby, Drill” mantra of President Trump, towards cleaner renewable energy sources. TXNM mainly operates in the solar and wind energy sectors in New Mexico and Texas.

Blackstone, which manages $60 billion in infrastructure assets, is hoping that stable, regulated returns and high capital needs in grid modernization will make TXNM a long-term investment winner.

TXNM said the acquisition would help it meet its clean energy goals and electricity demand while maintaining the reliability of the grid.

Utilities Sitting Pretty

It is not only Blackstone lighting up M&A in the energy sector. Utility NRG Energy (NRG) said last week it would buy some power generation assets from energy infrastructure investment firm LS Power in a $12 billion deal.

Earlier this year, KKR (KKR) and PSP Investments bought a 20% stake in American Electric Power’s transmission network for $2.82 billion.

The Blackstone deal, which is expected to close in the second half of this year, is also a signal that confidence in the dealmaking PE sector remains strong despite recent economic uncertainty.

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