Automatically translated version. May contain inaccuracies compared to the original.
After the deal, Germany and France will own the group on a parity basis.
The German government has agreed to acquire 50% of the shares of the German-French defense group KNDS, which manufactures the Leopard 2 tanks and the self-propelled howitzers PzH 2000. This is reported by Tagesschau, citing confidential government documents.
The value of the deal is not being disclosed.
KNDS was formed in 2015 year through the merger of the German armored-vehicle maker Krauss-Maffei Wegmann and the French state company Nexter. After the deal, Germany and France will own the group on parity—by 50% each.
Initially, KNDS planned an IPO in 2026 year, listing 20% of the shares on the stock exchange. In that case, Germany's and France's stakes would be 40% each. However, they canceled plans to go public due to unfavorable market conditions.
If the deal is realized, it would be the largest example of direct state participation of Germany in the equity of a defense company. Berlin would be able to directly influence investment decisions, modernization of production capacities, and the ramping up of armored-vehicle output.
The German unit of KNDS produces Leopard 2 tanks and PzH 2000 self-propelled howitzers, which, among other things, have supplied Ukraine. Together with Rheinmetall, the group also manufactures the Boxer wheeled armored vehicle.
As a reminder, the defense group Rheinmetall announced the launch of a new mid-caliber ammunition factory at a site in Albastete, Spain.
Franco-German arms group KNDS will establish a branch in Ukraine - media.
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