BERLIN, July 21 (Reuters) - German Chancellor Friedrich

Merz said on Monday the government had not yet decided whether

it would take a stake in the German division of state-owned

Dutch power grid operator TenneT and was still in talks with the

Netherlands.

The Netherlands said last month it would announce in

September whether it would sell a minority stake in TenneT

Germany or pursue a partial IPO, in what could be one of

Europe's biggest deals in 2025.

The Dutch government embarked on a dual track process for

TenneT Germany after a partial sale to German state lender KfW

failed to materialise last June.

"The discussion within the federal government is currently

ongoing and has not yet been concluded," Merz said in a joint

news conference with Norwegian Prime Minister Jonas Gahr Store.

Norway's vast sovereign wealth fund is considering a

multi-billion dollar investment in TenneT Germany, German

newspaper Handelsblatt wrote earlier this month, citing people

familiar with the matter.

Asked whether he would support this, Store said the fund had

already made "significant" investments in German companies.

"There are many opportunities in Germany to find companies

to invest in", Store said.