Germany plans to take 40% in Leopard tank maker KNDS, joining France as stakeholder
The deal would give Germany and France equal stakes in KNDS and clear the way for a dual listing that could value it at up to 18 billion euros.
- On Monday, the German government announced it intends to acquire a 40% stake in defense contractor KNDS from family shareholders, aligning its ownership level with France.
- Formed in 2015 through the merger of Krauss-Maffei Wegmann and Nexter, KNDS is a major European producer of military equipment including Leopard tanks and Boxer armored vehicles.
- Bloomberg reported on Sunday that the company could be valued at up to 18 billion euros, with the agreement paving the way for a possible IPO in the near future.
- The German government stated the stake "will secure long-term influence" on a company strategically significant for European security, supporting the continent's rearmament push.
- Both nations described the framework as a "decisive step towards strengthening their common sovereignty in land defence," aiming to bolster European industrial and defense capabilities long-term.
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Paris and Berlin have sealed an agreement on the governance of the KNDS defence group, paving the way for a joint stock exchange and a possible introduction to the stock exchange. A key step for this European champion of the battle tank and the future MGCS programme.
Radio France Internationale
Free Malaysia Today NewsFrance, Germany reach deal on arms maker KNDS, paving way for IPO
While the future fighter aircraft project turned into a fiasco, Germany and France did not give up their Main Ground System (MGS). Both countries announced on Monday 22 June that they had reached an agreement on the balanced distribution of industrial capital to develop it.
The Federal Government wants to join the tank manufacturer KNDS and has now agreed on this with Paris. There, the step is interpreted as a positive signal – after the FCAS fiasco.
KNDS produces weapons systems such as the Leopard 2 and belongs to the German family alongside the French state behind KraussMaffei Wegmann. In contrast to the fighter jet project, both sides agree to form a leading defense company.
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