May 12 (Reuters) - The infrastructure investing arm of

asset manager Blackstone is in talks to buy New Mexico

and Texas-focused utility TXNM Energy ( TXNM ), a person familiar with

the matter said on Monday.

Conversations between Blackstone Infrastructure Partners

and TXNM about structuring an agreement are ongoing, said the

source, who cautioned the situation was fluid and there was no

guarantee a deal would be struck.

The source spoke on condition of anonymity to discuss

confidential deliberations.

Bloomberg News earlier on Monday reported the two parties

were in talks for an agreement that could be reached in the

coming weeks, citing people familiar with the matter.

TXNM did not respond to a comment request. Blackstone

declined to comment.

Based in Albuquerque, New Mexico, TXNM Energy ( TXNM ) provides

electricity to 800,000 homes and businesses in New Mexico and

Texas, according to its website.

The company, at the time called PNM Resources, had

agreed a sale in 2020 to Avangrid. However, more than three

years after the initial agreement was struck, the two sides

walked away from the deal due to regulatory opposition.