Key facts
- Germany intends to acquire a 40% stake in KNDS.
- France already holds a 50% stake in KNDS.
- The German and French governments will become joint state shareholders in KNDS.
- The deal aims to bolster European arms production and secure strategic independence.
- KNDS was formed in 2015 from the merger of Germany's Krauss-Maffei Wegmann and France's Nexter.
- The agreement paves the way for a potential KNDS stock market listing.
Germany announced its intention to acquire a 40% stake in KNDS, the Franco-German defense contractor responsible for the Leopard and Leclerc battle tanks. This move will position Germany alongside France as a joint state shareholder, with both nations aiming for equal holdings in the company. KNDS, established in 2015 through the merger of Germany's Krauss-Maffei Wegmann and France's Nexter, reported revenues of €4.4 billion last year and employs over 11,000 people. The decision reflects a broader European push to expand military spending and manufacturing capacity, driven by the ongoing threat from Russia's war in Ukraine and concerns about U.S. security commitments. Berlin views the investment as strategic, aiming to secure lasting influence over a company critical to European security and to reinforce domestic industrial output and technological independence. The governments have agreed on the future strategy and governance of KNDS, with the deal potentially paving the way for a future stock market listing.