Hamburg / Silicon Valley – The German development bank (KfW) has successfully completed the acquisition of a strategic minority stake of 25.1 % in TenneT Germany GmbH & Co. KG, including a commitment to provide further equity of up to EUR 2.3 billion for the expansion of the electricity grid in Germany. With the transaction closing on 3 July 2026, one of the most significant infrastructure projects in the German energy sector has been completed. KfW's investment is on behalf of the German government and will strengthen the long-term financing of Germany's largest transmission system operator, as well as the further expansion of the electricity grid infrastructure.
A CMS team led jointly by Dr Holger Kraft and Dr Eckart Gottschalk provided KfW with comprehensive legal advice throughout the entire transaction – from structuring and drafting the contracts through to its successful completion. The advice primarily involved analysing and structuring the transaction, governance issues, conducting comprehensive legal due diligence and assessing key carve-out and unbundling factors. In addition, CMS advised KfW on negotiations with the parties involved and the relevant authorities, as well as on all legal matters.
With the completion of the investment, the German government, via KfW, acquires a strategic stake in an infrastructure company of central importance to Germany and Europe. The transaction sends a strong signal regarding security of supply, investment capability and the further expansion of Europe's energy infrastructure. Together with the institutional investors already involved, TenneT Deutschland's equity base will be strengthened on a long-term basis.
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