European business and political developments were marked on Wednesday by a multibillion-euro energy infrastructure deal, government deliberations over support for Jaguar Land Rover’s supply chain, renewed union pressure in France, and choppy equity markets shaped by geopolitics.
Dutch Government agrees to sell 46% stake in TenneT Germany
The Dutch government announced it will sell a 46% stake in power grid operator TenneT’s German operations to an investor consortium for up to €9.5 billion ($11.3 billion).
The deal, one of Europe’s largest this year according to LSEG data, is designed to meet surging capital needs for energy infrastructure across the continent.
The consortium includes Dutch pension fund manager APG, Singapore’s sovereign wealth fund GIC, and Norges Bank Investment Management (NBIM), the operator of the world’s largest sovereign wealth fund.
Under the arrangement, the Dutch state will issue new shares in TenneT Germany for private placement to the consortium.
According to the Dutch finance ministry, the investment will inject €8.5 billion into TenneT Germany to sustain its credit rating and provide an additional buffer to reduce risks for the state.
APG confirmed it will acquire around an 11% stake, NBIM said it will hold 21.8%, and the balance will be taken by GIC.
UK weighs emergency support for JLR suppliers after cyberattack
The UK government is considering steps to shield suppliers of Jaguar Land Rover (JLR) from the fallout of a cyberattack that has forced weeks of halted production.
Business Secretary Peter Kyle is weighing a plan where the government would temporarily buy parts from suppliers and sell them back to JLR once manufacturing resumes, ITV News reported.
JLR, owned by India’s Tata Motors, was hit by the attack on August 31, shutting down production at its facilities in the UK, Slovakia, Brazil, and India.
The disruption is expected to last into October, creating acute risks for suppliers tied to JLR’s “just in time” production schedules.
Unions have urged the government to introduce a furlough scheme to support affected workers.
While officials are reviewing options for assistance, no formal commitment has yet been made to provide financial aid to smaller suppliers.
French Unions call new strike as pressure mounts on Lecornu
France’s trade unions announced another day of nationwide strikes and protests on October 2 as they seek to force Prime Minister Sébastien Lecornu to abandon his predecessor’s austerity fiscal policies.
Union leaders said they were dissatisfied with Lecornu’s response to a September 18 protest that drew hundreds of thousands of participants.
Marylise Leon, head of the CFDT, the country’s largest union, said: “The prime minister did not provide any clear answers to the workers’ demands, so for the unions, it’s a missed opportunity. It doesn’t add up.”
The demonstrations come as Lecornu, appointed by President Emmanuel Macron less than three weeks ago, struggles to form a government and draft a 2026 budget.
With a divided parliament and mounting fiscal pressures, his room for manoeuvre remains limited.
European stocks edge lower as defence shares outperform
European equity markets ended the day marginally lower despite a surge in defence stocks following comments from US President Donald Trump on the conflict in Ukraine.
The pan-European Stoxx 600 provisionally closed down 0.14%, recovering from steeper intraday losses.
The Stoxx Europe Aerospace and Defence Index rose about 1.3%, supported by sharp gains in key defence names.
Germany’s Renk and Hensoldt climbed around 8% each, while Sweden’s Saab advanced nearly 5.5%.
The sector rallied after Trump stated in a post on Truth Social that Ukraine, with European Union support, could reclaim “all of its territory” from Russia — a notable shift in his public stance on the war.
The post Europe bulletin: TenneT $11.3B sale, JLR cyber fallout, stocks end lower appeared first on Invezz