Germany plans to acquire a 40% stake in the Franco-German defence company KNDS, known for manufacturing the Leopard 2 tank, a German government source said on Wednesday.
Under the agreement, Germany’s stake will initially reach 40% before being reduced to 30% within two to three years, the source revealed, without specifying the total value of the transaction.
KNDS is currently controlled by two entities: the French state, via its public holding company GIAT Industries, and the German Wegmann family.
The company has long anticipated a public stock offering, and Germany’s decision to invest aims to balance French influence within the firm.
The agreement ensures that Germany will hold equal rights to France, even after its stake is reduced, the source added.
France may also reduce its share “where possible,” according to the source.
Germany is expected to purchase shares at the initial public offering price, without paying a control premium.
KNDS was formed in 2015 following the merger of France's Nexter Systems and Germany’s Krauss-Maffei Wegmann.
The German newspaper Bild reported that the IPO coincides with plans by the Wegmann family to sell its shares.
Currently valued between €18 and €20 billion in financial circles, KNDS produces military equipment, including the Boxer transport vehicle, artillery, and ammunition.
According to its website, the defence group employs over 11,000 people, reports an annual turnover of €3.8 billion, and expects an order book worth €23.5 billion in 2024.
