Vattenfall sells German transmission grid to Belgian operator, Australian fund

Vattenfall sells German transmission grid

BERLIN — Utility Vattenfall AB says it is selling its German electricity transmission grid to Belgian operator Elia and Australia’s Industry Funds Management in a deal worth euro810 million ($1.1 billion).

Sweden-based Vattenfall said Friday that Elia will get a 60 percent stake in and operational control of its 50Hertz Transmission GmbH subsidiary, which owns and operates the grid. IFM — an infrastructure investment manager — will have a 40 percent stake.

The transaction is subject to approval by European Union and German authorities. Vattenfall says it expects the deal to close in the second quarter.

The company says the buyers are taking responsibility for necessary investment in the transmission grid estimated to total “several billion” euros.