Commerz Real closes EUR 700m power grid deal

Commerz Real has completed the groundbreaking acquisition of a majority stake in the German energy giant RWE's transmission grid for EUR 700 mln.

The deal on behalf of a new infrastructure fund for institutional investors was able to close after the European Commission approved the deal. Commerz Real said the deal opened up a new asset class for its institutional investors. 'The transaction is unprecedented in Germany in terms of its form and scope,' the company said.

Commerz Real is now in negotiations on further infrastructure projects.

In July, Commerz Real announced that - acting on behalf of a consortium of institutional investors - it agreed to acquire almost 75% of REW's transmission system operator Amprion.

Members of the acquisition consortium are companies from Munich Re and ERGO, represented by MEAG, Swiss Life represented by Swiss Life Deutschland, Talanx and pension funds for members of the medical profession in Westfalen-Lippe and Brandenburg.

RWE retains control of the remaining 25.1% in Amprion and will additionally hold an indirect stake of 10.8% through the consortium. Commerz Real was advised in this transaction by Clifford Chance, Ernst & Young, Bet and Marsh.

Commerz Real will initially hold an indirect stake in Amprion of 13%. But Commerz Real will place its own stake and RWE's additional share with other investors in the short term.

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