Blackstone stock purchase may have violated New Mexico state law

Blackstone’s application to the New Mexico Public Regulatory Commission (NM PRC) to acquire TXNM, the parent company of New Mexico-utility Public Service Company of New Mexico (PNM), disclosed that the firm purchased over $400 million worth of TXNM stock, which closed on June 2, 2025. According to the New Mexico Attorney General and other intervenors in the case, the sale may have violated state law requiring New Mexico regulators to approve these types of sales related to utility mergers. 

ProsperityWorks, a nonprofit advocating for economic prosperity on behalf of low-income New Mexicans, first called into question the stock purchase by Blackstone, saying “This should weigh heavily in the Commission’s evaluation of whether it can adequately protect customers and preserve its jurisdiction if the merger is approved”. The New Mexico Department of Justice (DOJ), among others, signed on to ProsperityWorks’ filing, describing Blackstone’s purchase of $400 million of TXNM stock as “not a neutral, stand‑alone investment; the record shows it was integrated with the merger, negotiated simultaneously and used to secure votes in favor of the acquisition” and that Blackstone and TXNM should be ordered by the NM PRC to explain why the purchase doesn’t violate New Mexico state law.

Blackstone and TXNM are arguing that this stock purchase did not violate state law because it was not related to the proposal by Blackstone to acquire TXNM, which was announced in May 2025. 

The New Mexico attorney general recently submitted a filing arguing the opposite, saying, 

“both the merger agreement and the PIPE transaction were to be signed and announced simultaneously.” The filing went on to say, “Blackstone and TXNM negotiated a purchase price for the stock simultaneously with negotiations for the purchase price of the company itself.” 

A public hearing with the NM PRC was scheduled for April 30th so all groups in the case could submit evidence and give arguments on their positions concerning the stock sale. The hearing was livestreamed on YouTube via the NM PRC’s website for the public to watch.