Blackstone Infrastructure extends TXNM Energy merger deadline to May 2027

The extension buys time to clear the regulatory approvals still outstanding in New Mexico.

Blackstone Infrastructure and TXNM Energy have pushed back the termination date of their merger agreement to 31 May 2027, giving the parties additional time to secure the regulatory approvals still outstanding. The extension keeps alive one of the larger utility take-privates in the US market, under which Blackstone Infrastructure would acquire all of TXNM’s outstanding common shares.

Much of the approval process is already complete. The transaction has cleared the Public Utility Commission of Texas, the Federal Energy Regulatory Commission, and the Federal Communications Commission, while TXNM shareholders backed it overwhelmingly in August 2025. What remains are sign-offs from the US Nuclear Regulatory Commission and the New Mexico Public Regulation Commission, the latter of which has proved the more complicated hurdle.

The New Mexico process is currently paused. TXNM is preparing a report demonstrating compliance with a commission order concerning a 2025 stock transaction between the company and Blackstone Infrastructure, which the regulator subsequently voided. The parties intend to file that report before the end of July 2026, after which they expect the commission to set a fresh procedural schedule for considering the merger. Subject to those approvals and customary conditions, TXNM estimates the deal could complete during the first half of 2027.

The companies have also moved to resolve the underlying issue financially. TXNM has entered into a $400m term loan to unwind the voided stock transaction, and plans to issue common stock and apply the proceeds to repaying that facility. The financing is designed to address the commission’s concerns while the approval process continues.

Sean Klimczak, Global Head of Blackstone Infrastructure, framed the extension as evidence of the firm’s staying power in a protracted regulatory process. “Blackstone Infrastructure’s extension of our merger agreement is a sign of our commitment to continue to work collaboratively with stakeholders as we demonstrate the significant benefits of the proposed merger. We remain focused on supporting TXNM Energy’s future growth plans as well as New Mexico’s ambitious clean and affordable energy goals,” he said.

For TXNM, the appeal lies in access to long-duration capital. The Albuquerque-based holding company serves more than 800,000 homes and businesses through its regulated utilities, Public Service Company of New Mexico and Texas-New Mexico Power, and faces the capital demands common across the sector: replacing ageing assets, connecting new generation, and meeting rising electricity demand. Don Tarry, President and CEO of TXNM Energy, said the company remained committed to the partnership “because it is critical to TXNM Energy’s long-term ability to provide clean, affordable and reliable power to the customers we serve”, adding that he looked forward to demonstrating how the deal would strengthen the grid and support long-term investment.

The episode illustrates the regulatory patience required of infrastructure investors in the regulated utility space. Blackstone Infrastructure invests across energy, transportation, digital infrastructure, water, and waste, typically pursuing long-term ownership of large-scale assets that generate stable cash flow. That horizon is being tested here, with the deal now potentially running close to two years from shareholder approval to completion, and with further delays or additional conditions still possible.