*

TPG's failed acquisition of Techem valued at 6.7 billion

euros

*

Techem is largest deal in Germany this year by valuation

*

Rise Climate, Mubadala, GIC take minority shares in new

transaction

(Adds bullet points, writes through after Partners

confirmation)

By Alexander Hübner and Emma-Victoria Farr

FRANKFURT/MUNICH, July 14 (Reuters) - German energy firm

Techem will remain in the hands of investor Partners Group

after its sale to U.S. financial investor TPG

fell through in May, the Swiss private equity firm said on

Monday, confirming an earlier report.

Partners Group will transfer its majority stake in the

heating and water metering services company, valued at 6.7

billion euros ($7.81 billion), the same as in the failed TPG

deal, to its own infrastructure fund, the company said.

The news confirms a Bloomberg News report earlier on Monday

about Partners Group's plans for Techem.

In terms of company valuation, Techem is the largest deal in

Germany so far this year, according to LSEG data.

TPG's climate investment arm Rise Climate, Abu Dhabi wealth

fund Mubadala and the Singaporean sovereign wealth fund GIC

- which TPG had brought on board as a co-investor for

the initially planned takeover last October - will acquire

minority shares, according to the Partners Group statement.

The transaction is set to close in the second half, subject

to conditions and regulatory approvals, it added.

"For us, this means continuity," Techem CEO Matthias

Hartmann told Reuters, adding that nothing would change in terms

of strategic direction following the transfer.

Canadian co-investors La Caisse and Ontario Teachers'

Pension Plan (OTPP), which had acquired Techem as part of a

consortium led by Partner Group's private equity business in

2018, are taking the opportunity to exit their stakes.

Techem's sale to TPG and sovereign wealth fund GIC fell

through in May, with the potential buyers withdrawing

registration of the 6.7-billion-euro ($7.59 billion) deal with

the European Union's antitrust authorities on May 7.

The European Commission had announced an in-depth review of

the takeover, as TPG's concessions were not deemed sufficient.

($1 = 0.8574 euros)