The Federal Energy Regulatory Commission (FERC) has given its approval for Blackstone Infrastructure's proposed acquisition of TXNM Energy (NYSE: TXNM), concluding the transaction is "consistent with the public interest." The decision represents a significant regulatory milestone and eases a key layer of uncertainty around the merger.
FERC addressed opposition that had focused on the implications of private equity ownership for a public utility, including concerns about Blackstone's broad holdings in data centers and how that ownership might affect regulatory oversight and consumer outcomes. The commission said it found "no evidence" that the transaction would undermine state or federal regulation, harm competition, or produce adverse effects on consumer rates.
In explaining its ruling, the regulator cited the "ring-fencing" measures that have already been pledged in New Mexico and Texas, indicating those safeguards were adequate to separate the utility's operations from potential risks associated with its prospective parent company's other holdings.
Regulatory clearances secured
- Federal Communications Commission approval - completed.
- Antitrust review under the Hart-Scott-Rodino process - waiting period expired.
- Texas Public Utility Commission approval - settlement approved earlier this month.
- Shareholder vote - overwhelmingly approved in August 2025.
Those approvals leave the transaction substantially advanced from a regulatory perspective, but it is not yet finalized.
Remaining approvals and final steps
Two significant regulatory actions still stand between the parties and closing: endorsement from the Nuclear Regulatory Commission and a final decision from the New Mexico Public Regulation Commission (NMPRC). The NMPRC has been characterized as a more challenging forum for utility mergers, making its pending decision a critical component of the deal timetable.
Market and strategic context
TXNM serves more than 800,000 customers across the Southwest and represents a strategic asset in Blackstone's infrastructure portfolio. The company's shares were reported to be steady in after-hours trading following the FERC announcement. Some analysts have maintained a "Sell" consensus on the stock amid earlier regulatory uncertainty; the commission's authorization nevertheless reduces a major regulatory overhang and shifts attention to the remaining state-level proceedings in New Mexico.
Conclusion
FERC's approval materially lowers federal regulatory risk for the Blackstone-TXNM transaction by rejecting arguments that private equity ownership would impair regulation, competition, or consumer rates, and by endorsing the ring-fencing commitments made in New Mexico and Texas. The outcome leaves two pivotal approvals outstanding, both of which will determine whether the deal can move to closure.