German government agrees to acquire 40% stake in defense firm KNDS ahead of IPO
The German government has agreed to acquire a 40% stake in Franco-German defense company KNDS, maker of the Leopard 2 tank, ahead of its planned IPO, sources in government circles told Reuters, dpa and AFP. The stake is expected to decline to 30% within two to three years, with France reducing its holding in parallel. KNDS board chairman Tom Enders welcomed the move but said the goal must be to reduce state holdings over time to below 50% combined.
The German government has agreed to acquire a 40% stake in Franco-German defense company KNDS, the manufacturer of the Leopard 2 tank, ahead of the company's planned initial public offering, sources in government circles told Reuters, dpa and AFP.
KNDS board chairman Tom Enders confirmed the agreement. "Ziel muss sein, über Zeit die Staatsanteile deutlich abzuschmelzen," Enders, the former Airbus chief, told Reuters. He said both states should together eventually hold less than 50%. "Nationale Sicherheitsinteressen sollten in erster Linie über Aufträge und spezifische Vereinbarungen gesichert werden und nicht über Mehrheitsbeteiligungen," Enders added.
According to the sources, the German stake is expected to decline to 30% within two to three years, with France reducing its holding in parallel. Regardless of the size of their respective stakes, Germany and France will have equal voting rights, meaning key decisions on jobs or production sites can only be taken jointly.
KNDS is currently owned equally by the French government and a German family. The company is valued at 20 billion euros. It is also involved in developing the Main Ground Combat System (MGCS), a Franco-German main battle tank project.
Defense Minister Boris Pistorius (SPD) first proposed a state stake in July 2025. Economy Minister Katherina Reiche (CDU) favored a smaller stake than Pistorius. The German Economy Ministry will lead the state entry, coordinating with the Defense Ministry, a government representative said.