Vattenfall German grid auction reportedly a one horse race

A consortium of heavyweight investors including Allianz, RREEF and Goldman Sachs, is reportedly the sole remaining bidder in the auction to acquire the Swedish energy company’s German transmission grid.

A syndicate of infrastructure investors is the sole remaining bidder for Vattenfall’s German electricity grid, according to Reuters.

The Swedish energy group is engaged in exclusive talks with a group made up of Allianz, RREEF and Goldman Sachs, said the report, adding that the consortium is bidding over €500 million for the grid.

The reported offer is some way below the €1 billion that Vattenfall was originally seeking. Last month the company said it was involved in talks with a number of bidders for the asset, adding that it intended to finalise the deal during the summer.

Other investors previously thought to have shown an interest in the grid include the Ontario Teachers’ Pension Plan and Global Infrastructure Partners.

Vattenfall voluntarily launched the sale of its German grid last summer, appointing Citigroup to handle the process. Vattenfall has estimated that around €2.5 billion will need to be invested in the grid over the next three to five years to connect offshore wind plants to the network.

E.ON, which controls the largest section of transmission infrastructure in Germany, has already committed to the European Commission to sell its grid, while RWE, which operates a section to the west of the country, is also understood to be planning the sale of its gas transmission assets.