The German government has announced plans to acquire a 40% stake in defense contractor KNDS. This company, known for producing Leopard and Leclerc tanks, is part of a strategy to enhance European production alongside NATO ally France.
Currently, the French state holds a 50% stake in KNDS. This firm originated in 2015 from the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The remaining half of KNDS is owned by the family behind Krauss-Maffei Wegmann.
KNDS, based in Amsterdam, reported revenues of 4.4 billion euros (5 billion dollars) last year. It employs over 11,000 people. European countries are increasing their defense spending and production in response to Russia’s war in Ukraine and concerns about U.S. unpredictability.
The German government stated that the proposed stake will ensure long-term influence over a strategically vital company for European security and defense capabilities. They noted it will also enhance national industrial value creation, technological sovereignty, and the protection of security interests and key technologies in Germany.
A joint statement revealed that Germany and France have reached an agreement on KNDS’s strategy and governance. They aim to become joint shareholders with equal participation levels, although specific details and timing are undisclosed. This agreement creates potential for KNDS to go public in the near future.
The two governments emphasized their shared commitment to bolster Europe’s industrial and defense capabilities, support their military forces, and enhance European sovereignty in the long run.
Apart from the tanks, KNDS products include Puma infantry fighting vehicles and Boxer and Dingo armored personnel carriers.