As expected, the German state is taking a share in the German operations of Dutch grid operator Tennet for €3.3 billion.

The deal gives the German government a 25.1% stake in Tennet Duitsland, which is currently 54% owned by the Dutch state. That stake gives it both veto rights over the business plan and senior appointments.

The Netherlands has been trying to partly divest its German arm for some time because billions of euros in investment are needed in the coming years. Last year, three institutional investors bought a 46% stake in Tennet Duitsland for €9.5 billion.

Tennet Germany has been part of the Dutch state-owned grid operator since 2010.

Both the Netherlands and Germany face major investment needs to strengthen their electricity networks, but as long as the Dutch state was the sole shareholder, it risked being liable for at least €65 billion in German infrastructure spending.