The German government has announced plans to acquire a 40% stake in the defense contractor KNDS. This company is known for producing the Leopard and Leclerc tanks. The move aims to strengthen European production in collaboration with France, Germany’s NATO ally.
France already holds a 50% stake in KNDS, which was established in 2015 through the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The remaining shares are owned by the German family behind Krauss-Maffei Wegmann.
Based in Amsterdam, KNDS reported revenues of 4.4 billion euros (5 billion dollars) last year; the company employs more than 11,000 people. European countries are increasing defense spending and production as they respond to Russia’s war in Ukraine and concerns about U.S. unpredictability.
The German government stated that its intended stake will ensure long-term influence over a company that is strategically important for Europe’s security and defense capacity. The government added that this move will also boost national industrial value creation, technological sovereignty, and the protection of key security interests and technologies in Germany.
A separate joint statement revealed that Germany and France have reached an agreement on the strategy and governance of KNDS. They plan to become joint shareholders at equal participation levels. Although the exact timing and final levels of stakes were not specified, the agreement paves the way for a possible future public listing of KNDS.
The two governments stressed their shared determination to enhance Europe’s industrial and defense capabilities, support their armed forces, and reinforce European sovereignty in the long term. Besides tanks, KNDS also produces Puma infantry fighting vehicles and Boxer and Dingo armored personnel carriers.
This article was translated from English by an AP editor with the help of generative AI tools.
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