German Government Abandons Full Purchase of Tennet Power Grid Due to Budget Constraints

Reported 8 months ago

Chancellor Olaf Scholz’s ruling coalition in Germany decided to drop the plan to acquire the entire German unit of Tennet Holding BV’s power grid due to financial limitations. The government's stretched finances led to the end of negotiations for a full sale of the grid operator to German development bank KfW, initially valued at around €22 billion. Discussions on merging the country’s four power grids to speed up the energy transition have been halted, with policymakers now considering alternative solutions like a strategic minority stake. Dutch Finance Minister stated a €1.6 billion gap in the Netherlands' budget due to the failed sale, prompting the need for short-term financing alternatives for Tennet.

Source: YAHOO

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