FERC Approves Blackstone Infrastructure’s Acquisition of TXNM Energy, Advancing Utility Merger

TXNM Energy (NYSE: TXNM) shares remained steady in after-hours trading after the Federal Energy Regulatory Commission (FERC) approved its proposed acquisition by Blackstone Infrastructure. The federal regulator determined that the transaction is “consistent with the public interest,” marking a major milestone for the utility merger and significantly reducing regulatory uncertainty surrounding the deal.

The FERC decision addresses concerns raised by critics regarding private equity ownership of public utilities. Opponents had questioned Blackstone’s broad portfolio, including its investments in data centers, and whether such ownership could influence electricity markets or consumer rates. However, FERC concluded there is no evidence that the acquisition would weaken state or federal oversight, reduce competition, or negatively impact customers. The commission also highlighted the effectiveness of “ring-fencing” measures already agreed upon in New Mexico and Texas, designed to insulate TXNM Energy’s utility operations from financial or operational risks tied to its parent company.

With this approval, the transaction has cleared several critical regulatory hurdles. The Federal Communications Commission has granted its approval, the Hart-Scott-Rodino antitrust waiting period has expired without objection, the Public Utility Commission of Texas has approved a settlement, and TXNM shareholders overwhelmingly voted in favor of the deal in August 2025. These developments collectively strengthen the merger’s path toward completion.

Two key approvals remain before the acquisition can close. The Nuclear Regulatory Commission must sign off on the transaction, and the New Mexico Public Regulation Commission is expected to issue a final decision. The NMPRC has historically taken a stricter stance on utility mergers, making its review particularly important.

TXNM Energy serves more than 800,000 customers across the Southwest and represents a strategic asset in Blackstone’s growing infrastructure portfolio. Although the stock has carried a “Sell” consensus from some analysts due to past regulatory risk, FERC’s authorization substantially de-risks the timeline and shifts attention to the remaining state-level approvals.