CMS advises KfW on the acquisition of 25.1 % of Germany's largest transmission system operator TenneT
Hamburg / Silicon Valley – CMS is advising KfW on one of Germany's most significant energy policy projects: the planned acquisition of a strategic minority stake of 25.1 per cent in Germany's largest transmission system operator TenneT Deutschland. With an investment volume in the billions, the transaction marks a milestone for the future of European energy infrastructure.
KfW's entry on behalf of the German government sends a strong signal for security of supply and transformation of the energy market and emphasises the central role of efficient network expansion. The project is exemplary for securing critical infrastructure and shows how strategic partnerships can accelerate the transformation of the energy system.
A CMS team led by Dr Holger Kraft and Dr Eckart Gottschalk provided KfW with comprehensive support in structuring and legally implementing the complex transaction. The mandate primarily involved analysing and structuring the transaction, advising on governance issues, conducting comprehensive legal due diligence and assessing key carve-out and unbundling factors. CMS also assisted KfW in negotiations with other parties and authorities and coordinated the relevant aspects relating to tax and compliance issues.
KfW is one of the world's leading development banks. Since 1948, it has been working on behalf of the German federal and state governments to improve economic, social and environmental living conditions globally. In 2024, it provided 112.8 billion euros in funding for this purpose. With a strategic minority investment in critical network infrastructure, it uses its structuring and capital market expertise to secure long-term investments.
TenneT Deutschland operates an approximately 14,000-kilometre-long extra-high-voltage grid from Schleswig-Holstein to Bavaria and was previously majority-owned by the Dutch company TenneT Holding B.V., which is owned by the Dutch state. The latter wants to reduce investments in the German electricity grid. As part of this process, TenneT Deutschland signed a contract with three new investors in September 2025: The APG pension fund, the Norwegian sovereign wealth fund Norges Bank Investment Management and the Singaporean sovereign wealth fund GIC will together hold 46 per cent of the shares in future, while the Dutch state will only hold 28.9 per cent.
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