TenneT, Europe’s largest electricity transmission system operator, recently locked in an agreement with the German federal government. To raise money, they plan to sell a 25.1% stake in their German subsidiary. The sale is being largely facilitated by the Kreditanstalt für Wiederaufbau (KfW), Germany’s large, development-oriented bank. This transaction is estimated at about €3.3 billion, or some $3.9 billion.
With this transaction, TenneT is going big. It seeks to improve the financial sustainability of its services in Germany. Through this structure, TenneT will maintain a controlling interest by retaining at least 28.9% ownership of the subsidiary. This subsidiary is at the heart of the company’s efforts to develop the country’s operations and infrastructure, managing the national rail system.
The deal is part of TenneT’s drive to provide long-term financial commitments and stability. Earlier, the company successfully garnered a €9.5 billion equity commitment from key institutional investors, including APG, GIC, and Norges Bank Investment Management. Their last deal supports the price established in this latest deal. It is consistent with the agreed equity valuation from an earlier equity investment they made with these institutional investors in September 2025.
We’re anticipating closing this transaction before the end of the first half of 2026. This timeline is contingent upon the fulfillment of customary conditions and upon receiving regulatory approval. The partnership has received strong backing from TenneT’s leadership, which sees this decision as a wise play.
“We warmly welcome the German state via KfW as a shareholder in TenneT Germany. The German state represents one of the most important stakeholders for TenneT in Germany. This co-shareholding creates valuable additional involvement, with particular attention to the increasing investment agenda and the new geopolitical reality. TenneT remains committed to ensuring a reliable, sustainable and affordable electricity supply.” – Manon van Beek, TenneT CEO
With the German state joining as a new shareholder, this will massively strengthen TenneT’s ability to invest. This support will be instrumental for TenneT’s future projects as the energy landscape is rapidly changing. The partnership highlights the depth of collaboration found in Germany’s extraordinary collaborative spirit to maintain and steward critical infrastructure. This is especially significant considering today’s increasing energy needs and geopolitical challenges.