FRANKFURT, Jan 12 (Reuters) - The German government has finished negotiations on investing in the German division of Dutch power grid operator TenneT and wants to acquire a stake for about 7.6 billion
Germany finalises deal on TenneT stake purchase, Politico reports
Germany's Investment in TenneT
FRANKFURT, Jan 12 (Reuters) - The German government has finished negotiations on investing in the German division of Dutch power grid operator TenneT and wants to acquire a stake for about 7.6 billion euros ($8.9 billion), news outlet Politico reported on Monday.
Details of the Stake Purchase
Germany's finance ministry did not immediately reply to requests for comment.
Strategic Importance of TenneT
TenneT told Reuters on Monday it was still in "constructive dialogue" with German state development bank KfW regarding a potential investment by Berlin in its German division.
Government's Energy Transition Goals
"We will inform you once we have concluded this dialogue and the result thereof," said TenneT in an emailed statement.
Citing government budget documents, Politico reported that the deal includes 5.76 billion euros for the purchase of shares from TenneT as well as for a capital increase to fund grid upgrades, with the remainder to be given to KfW, which is managing the transaction, in the form of guarantees.
Berlin has been considering buying a 25.1% stake in TenneT's German unit, the country's largest high-voltage grid operator, to help fund investments needed for the energy transition and keep greater control over critical energy infrastructure assets.
The German government has set aside 5.8 billion euros for the purchase as well as further payment obligations, according to an economy ministry letter seen by Reuters in November.
Berlin already holds minority stakes in two other major high-voltage power grid firms, TransnetBW and 50Hertz.
The Dutch government, TenneT's parent, in September agreed to sell a 46% stake in its German unit to an investor consortium following a failed attempt to sell it to Berlin last year under the previous government.
TenneT operates infrastructure needed to connect renewable generation to consumers and industry, giving it a strategic role in Europe's energy transition.
($1 = 0.8557 euros)
(Reporting by Ludwig Burger, Matthias Inverardi, Friederike Heine and Linda PasquiniEditing by Miranda Murray and Barbara Lewis)
