Berlin targets TenneT Germany stake purchase in early 2026, ministry letter shows

BERLIN (Reuters) -The German government aims to sign an agreement by early next year to buy a 25.1% stake in the local division of Dutch power grid operator TenneT, according to a letter from the economy ministry.

The letter, seen by Reuters and addressed to the federal finance committee, says Berlin has earmarked 5.8 billion euros ($6.7 billion) for the purchase as well as further payment obligations as part of capital increases from 2026 to 2029.

The Dutch government in September agreed to sell 46% of TenneT Germany to an investor consortium consisting of pension fund manager APG, Singapore's sovereign wealth fund GIC and Norges Bank Investment Management for up to 9.5 billion euros.

Berlin has been considering buying a 25.1% stake as part of a push to keep greater control over critical energy infrastructure assets.

Germany also holds minority stakes in power grids TransnetBW and 50Hertz via state-backed lender KfW, which is also expected to make the TenneT Germany purchase.

"The aim is to complete the transaction quickly while exercising the necessary due diligence," the letter dated November 13 said, adding the goal was to sign a deal by early 2026 and close it by the second quarter, subject to negotiations.

One source familiar with the matter said a deal was likely to be signed in January.

The letter said there were currently no plans to buy a stake in Amprion, the fourth high-voltage power transmission network in Germany.

Germany's economy ministry declined to comment on the letter, which was first reported by trade publication Tagesspiegel Background.

($1 = 0.8652 euros)

(Reporting by Holger Hansen and Christoph Steitz; Editing by Bill Berkrot)