State-owned Dutch power grid operator TenneT has reportedly initiated discussions with potential investors regarding the sale of a minority stake in its German division, Reuters has reported.
The move could lead to one of the largest European transactions of 2025.
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The German unit, with a regulated asset base of €27.8bn ($31.1bn) as of 2024, expects 25% annual growth through to 2029.
A sale could potentially raise up to €12bn, though the final amount will depend on the stake size and debt level.
The Dutch state has pledged to maintain a BBB-rated capital structure for TenneT Germany, aligning with other German high-voltage grid operators. Non-binding bids for TenneT Germany are anticipated by mid-June 2025.
The development comes amidst a challenging deal-making environment due to the US trade war.
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By GlobalDataRegulated grid assets such as TenneT Germany, offering fixed returns, are deemed attractive investments in the current economic climate of falling interest rates and uncertainty.
Funds such as Apollo Global Management, Canada’s Caisse de depot et placement du Quebec and Macquarie have shown interest, with BlackRock’s Global Infrastructure Partners and CPP Investment Board also expected to consider the opportunity.
The potential deal’s size may encourage collaboration among interested parties, although there is no certainty of a transaction. All mentioned funds have refrained from commenting.
After a failed partial sale to KfW in 2024, the Dutch government is considering both a sale and a partial initial public offering for TenneT Germany.
Dutch Finance Minister Eelco Heinen has expressed his intention to decide on the best course of action by early July, following investor discussions and non-binding bids.
TenneT Germany, with more than 14,000km of high-voltage power network, reported earnings before interest, taxation, depreciation and amortisation of €2.2bn in 2024.
In April 2025, TenneT announced a significant restructuring to financially separate its Dutch and German operations, ensuring a solid foundation for both entities. This involves transferring the company’s senior debt from the holding level to TenneT Netherlands.
