Blackstone's $400 Million TXNM Move Faces Reversal-Now the $11.5 Billion Takeover Is at Risk

Why the $400 million stock sale matters to the TXNM-Blackstone deal

Hearing examiners recommended that the $400 million sale of TXNM Energy stock to Blackstone be reversed after concluding it may have violated New Mexico law requiring prior PRC approval for utility mergers and related acquisitions. If the commission follows that recommendation, the issue will go beyond paperwork. It would raise questions about whether Blackstone secured a position before regulators had the chance to shape the terms of the deal.

Blackstone already obtained an 8 million-share, 7.59% stake in TXNM through a sale completed in June 2025. Bulls in the deal can argue the stock purchase was separate from the broader privatization. But that argument only works if regulators accept that the transaction was truly independent. Critics say Blackstone was positioning themselves before regulators could rule, which is why the dispute has become a central procedural issue rather than a side note.

The next major checkpoint is the public evidentiary hearing. If the commission follows the examiners' advice, Blackstone and TXNM could be forced to unwind the stock purchase and refile the acquisition. That would be more than a procedural setback; it would signal that the buyer may have moved before regulators were ready to impose conditions.