Germany Plans to Acquire Stake in Defense Contractor KNDS

The German government intends to purchase a 40% stake in defense contractor KNDS, known for producing Leopard and Leclerc tanks. This move aims to enhance European production in collaboration with NATO ally France. The announcement was made on Monday.

France currently holds a 50% share in KNDS. The company was established in 2015 following the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The remaining half is owned by the German family that controls Krauss-Maffei Wegmann.

KNDS, based in Amsterdam, reported revenues of 4.4 billion euros ($5 billion) last year and employs over 11,000 people.

European countries are increasing defense spending and production to strengthen military forces. This is in response to the conflict with Russia in Ukraine and concerns over the unpredictability of the United States. The German government highlighted that acquiring this stake will provide long-term influence over a company crucial to European security and defense capabilities.

A statement noted the enhancement of national industrial value, technological sovereignty, and the safeguarding of critical technologies and security interests in Germany.

A joint statement from the German and French governments revealed an agreement on KNDS’s strategy and governance. They plan to become joint shareholders with equal shares. While the timeline and final ownership levels remain unspecified, the agreement facilitates a potential KNDS stock market debut soon.

The two governments expressed their shared commitment to boosting Europe’s industrial and defense capabilities, supporting their armed forces, and reinforcing long-term European sovereignty.

Besides tanks, KNDS also manufactures Puma infantry fighting vehicles and Boxer and Dingo armored personnel carriers.