Government talks over purchasing the Tennet electricity network hit a stumbling block
The talks concerning Tennet's Dutch division selling its German branch to the Federal Republic of Germany have fallen through. Tennet revealed on Thursday that the negotiations between Tennet Holding and KfW, acting on behalf of the Federal Republic of Germany, for a full acquisition of Tennet Germany, have come to a halt.
The Federal Government told the Dutch government that they won't be able to proceed with the proposed deal due to financial constraints.
Now, Tennet is seeking alternative funding options. The company stated that Tennet Holding is planning to seek funds from public or private capital markets to secure a long-term financing solution for its German operations. The Federal Government is open to backing these alternate strategies.
Moreover, it was mentioned that Tennet is holding onto its significant investment plans for both countries and is being backed by the Dutch government. The Dutch government recently gave Tennet a shareholder loan of 25 billion Euros for the years 2024 and 2025.
Within the Federal Government, intense negotiations are currently ongoing regarding a draft for the 2025 Federal Budget and medium-term financial planning. Several ministries are pushing back against the budget reduction targets set by the Finance Ministry.
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The proposed sale of Tennet's German branch to the Federal Republic of Germany, initially discussed in negotiations, has been halted due to financial constraints from the Federal Government. This halt in the sale of the Tennet power grid in Germany has led Tennet to explore alternative funding options, seeking funds from public or private capital markets. The Federal Government is open to backing these alternate strategies for Tennet's German operations.
