Germany has agreed to buy 25.1% of Dutch grid operator TenneT's German division for 3.3 billion euros ($3.9 billion), it said on Tuesday, in a long-planned move…
Germany has agreed to buy 25.1% of Dutch grid operator TenneT's German division for 3.3 billion euros ($3.9 billion), it said on Tuesday, in a long-planned move to tighten Berlin's control over critical energy infrastructure.
The deal marks a significant step in the German government's attempts to assert more influence over high-voltage grids, the backbone of the country's energy supply, which are in need of tens of billions of euros in investment to remain safe.
The Dutch government, meantime, is cutting its stake in TenneT Germany at a time when rising investment needs have raised doubts over whether large parts of Germany's power grids should be funded by its European neighbour.
The acquisition will take place via German state-backed lender KfW KFW.UL, which was advised by Citigroup C.N and already holds minority stakes in other German transmission operators TransnetBW EBKG.DE and 50Hertz ELI.BR.
Germany Secures Tennet Investments
"The federal government's investment in TenneT will help to secure the billions in capital that will be needed in the coming years," German Economy Minister Katherina Reiche said.
"With this investment in the infrastructure of the future, we are strengthening Germany as a business location."
Through its stake, Berlin will
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