Connect with us

Bussiness

Dutch Government Seeks Options for Sale of German Grid Business – BNN Bloomberg

Published

on

(Bloomberg) — The Netherlands plans to find other buyers for Tennet Holding BV’s power grid in Germany after more than a year of negotiations with the government in Berlin failed to secure a sale.

A sale to private investors or a potential initial public offering are among “alternative structural solutions” being considered for Germany’s biggest electricity network, state-owned Tennet said in a statement. The business was previously valued at around €22 billion ($24 billion).

While the Dutch government has continued to provide loans to Tennet Germany to finance its ongoing operations, it’s unwilling to further fund its neighbor’s grid expansion. Tennet had first announced its interest in selling the business in February last year, but talks stalled after a budget crisis forced the German government to overhaul its finance plan. 

Dutch Float Alternatives to Speed Up TenneT’s German Grid Sale

The newly installed Dutch government is set to send a letter to parliament Friday over the matter, according to people familiar with the situation. Meanwhile, the outgoing administration issued its own letter to lawmakers Thursday that underlined the necessity of the sale to raise funds. 

The preferred buyer is still the German state, said the people, who asked not be named as the matter is private. Tennet is also exploring the option of selling to another grid operator in the European Union, the people said.

The Dutch government wants to use part of the proceeds from the sale to upgrade its own overloaded power grid, which has posed risks to the growth ambitions of some of the country’s biggest companies, including ASML Holding NV.  

–With assistance from Priscila Azevedo Rocha, Kamil Kowalcze and Wout Vergauwen.

(Updates to add government steps from fourth paragraph)

©2024 Bloomberg L.P.

Continue Reading