A consortium of Norway's sovereign wealth fund and Dutch pension fund APG is preparing to place a bid for a minority stake in the German arm of TenneT, as reported by Reuters, citing German newspaper Handelsblatt.

The Dutch government is expected to decide in September 2025 whether to sell a minority stake in TenneT's German division or to pursue a partial initial public offering (IPO).

If no agreement is reached, TenneT Germany is ready to proceed with its listing plans and could publish an intention to float notice within two days of the decision.

In May, TenneT commenced discussions with investors about divesting a minority share of its German operations, potentially leading to one of Europe's most significant deals in 2025.

The sale of new shares in TenneT Germany could generate up to €12bn ($13.9bn), though the final amount may vary based on the stake size and debt levels agreed.

With a regulated asset base valued at €27.8bn ($31.1bn) as of 2024, TenneT Germany anticipates an annual growth rate of 25% through to 2029.

The German electricity grid is facing substantial investment requirements to accommodate the expansion of renewable energy capacity and to support the transition from fossil fuels.

In April 2025, TenneT announced a major overhaul of its financial framework to enable the division of its operations in the Netherlands and Germany into two distinct, independently financed units.

The goal is to cater to the capital requirements of its German division while securing a solid financial base for both entities.

Under the planned financial reorganisation, the current senior debt held at the holding company will be reallocated to TenneT Netherlands.