TenneT Germany, the German subsidiary of Dutch state-owned transmission operator TenneT, is preparing to raise up to €10 billion through a private placement, according to a report by the Financial Times. The move could pave the way for a partial sale of the business to the German government.
The deal, which values TenneT Germany at approximately €40 billion including debt, would see the Dutch government retain a majority stake of around 55% after completion, the FT reported, citing sources familiar with the discussions.
Potential investors in the private placement reportedly include Norway’s sovereign wealth fund Norges Bank Investment Management, a Dutch pension fund, and an unnamed Asian sovereign wealth fund. The transaction is expected to conclude in 2026.
An unnamed source told the FT, “The capital raise is designed to give TenneT Germany more financial flexibility as it prepares to support the expansion of the grid.”
The Dutch government has been seeking to divest from its German grid operations for several years, in part due to reluctance to allocate further taxpayer funds toward upgrading Germany’s electricity infrastructure. Earlier negotiations between the Netherlands and Germany stalled last year due to disagreements over valuation.
However, the German government has reportedly renewed interest in acquiring a 25% stake in TenneT Germany following the May inauguration of Chancellor Friedrich Merz’s coalition. The proposed capital increase may help bridge the valuation gap that hindered earlier talks.
According to the FT, the planned injection of funds would enhance TenneT’s ability to raise additional debt for investment in Germany’s power grid, which is undergoing significant expansion to support the country’s energy transition goals.
TenneT, one of Europe’s major electricity transmission operators, plays a critical role in cross-border energy flows and renewable integration across the continent.
