TenneT Holding announced that it has finalized a transaction with KfW Bankengruppe, representing the German government, in which the bank will contribute €3.3 billion to obtain a 25.1 percent stake in TenneT Germany.
Through this agreement, TenneT Holding will no longer be the primary shareholder of its German ventures, yet it will maintain a substantial 28.9 percent interest and participation in critical decision-making processes.
TenneT serves as the primary operator of the transmission system in the Netherlands and a significant portion of Germany.
The partnership with Berlin in joint shareholding brings a valuable additional element, specifically focusing on the expanding investment agenda and the evolving geopolitical landscape," expressed TenneT CEO Manon van Beek.
Furthermore, Berlin is contemplating the acquisition of a 25.1 percent share in TenneT's German division, which is the largest high-voltage grid operator in the country.
This move is aimed at supporting investments required for the energy transition and maintaining a higher level of oversight over essential energy infrastructure assets.
According to a November letter from the economy ministry, the German government has allocated 5.8 billion euros for the procurement and additional financial commitments.
Berlin currently has ownership interests in two additional prominent electricity distribution companies, TransnetBW and 50Hertz, through minority stakes.
Last September, the Dutch government, as the parent company of TenneT, agreed to transfer ownership of a 46 percent portion of its German division to a group of investors.
This decision came after an unsuccessful attempt to sell the division to the city of Berlin under the previous administration.
TenneT manages the essential infrastructure required to link renewable power generation to end-users and industrial facilities, thereby placing the company in a key position within Europe's energy evolution.