Key Points:
- The Federal Energy Regulatory Commission approved Blackstone’s purchase of TXNM Energy.
- Regulators found no evidence that the buyout would increase customer utility rates.
- The mandatory waiting period for federal antitrust review has officially ended.
- The massive $11.5 billion deal includes assuming the utility company’s existing debt.
TXNM Energy announced on Friday that the United States Federal Energy Regulatory Commission officially approved its buyout. Blackstone Infrastructure will purchase the utility company. This major regulatory milestone brings the two companies one step closer to finalizing their massive agreement.
Blackstone first agreed to buy TXNM Energy last year. The investment giant offered an $11.5 billion deal to take over the utility provider. This multi-billion-dollar price tag includes taking on the energy company’s existing debt.
Regulators closely reviewed the proposal to ensure it protects everyday consumers. The federal commission concluded that the purchase serves the public interest. Officials stated they found absolutely no evidence that the transaction would harm state or federal oversight.
Most importantly for local residents, the commission confirmed the buyout will not trigger unfair price hikes. Customers rely on stable energy costs to power their homes and businesses. Regulators assured the public that this corporate change of hands will not negatively affect utility rates.
TXNM Energy also shared another legal victory on Friday. The mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act recently expired. This expiration means the federal government sees no monopoly concerns and will not block the merger on antitrust grounds.
TXNM Energy operates regulated utilities that deliver electricity to hundreds of thousands of customers across Texas and New Mexico. Blackstone wants to buy the company to expand its footprint in the rapidly growing energy infrastructure sector. As power demand steadily rises, large investment firms see tremendous value in owning and upgrading the physical grids that keep the lights on for communities.
The deal still requires a few final sign-offs before the companies can officially close the transaction. However, securing the blessing of federal energy regulators removes one of the biggest hurdles. Both companies look forward to completing the transition and investing in the region’s energy future.
