Key facts
- Germany intends to take a 40% stake in defense contractor KNDS.
- The German and French governments will become joint shareholders in KNDS.
- The agreement aims to strengthen European defense production and capabilities.
- KNDS products include Leopard and Leclerc tanks, Puma infantry fighting vehicles, and Boxer and Dingo armored personnel carriers.
The German government announced its intention to acquire a 40% stake in KNDS, a defense contractor known for its Leopard and Leclerc tanks. This move aligns with France, which already holds a 50% stake, aiming for equal shareholding between the two nations. KNDS, formed in 2015 from the merger of Germany's Krauss-Maffei Wegmann and France's Nexter, reported 4.4 billion euros ($5 billion) in revenue last year and employs over 11,000 people. The agreement underscores a broader European effort to bolster defense production and capabilities in response to geopolitical tensions, particularly Russia's war in Ukraine, and aims to secure long-term influence over a strategically significant company for European security.