Germany Plans to Acquire Stake in Defense Contractor KNDS

The German government intends to acquire a 40% stake in defense contractor KNDS as part of efforts to boost European production alongside French ally NATO. KNDS, formed in 2015 through a merger between Germany’s Krauss-Maffei Wegmann and France’s Nexter, already sees the French state holding a 50% stake. The remaining 50% is owned by the family behind Krauss-Maffei Wegmann.

Based in Amsterdam, KNDS reported €4.4 billion ($5 billion) in revenue last year, with a workforce exceeding 11,000 employees. European countries are increasing defense spending and production as they address the ongoing Russian war in Ukraine and concerns about U.S. unpredictability. Germany states that acquiring this stake will secure long-term influence over a company strategically vital for European security and defense capability. The move also aims to strengthen national industrial creation, technological sovereignty, and protection of key technologies and security interests in Germany.

A separate joint statement noted that Germany and France reached an agreement on KNDS’s strategy and governance, seeking equal participation levels for both countries as joint shareholders. Although the precise timing and final distribution of stakes remain unclear, the agreement paves the way for a potential KNDS public offering in the near future.

Both governments stated their shared determination to reinforce Europe’s industrial and defense capabilities, support their military forces, and secure long-term European sovereignty. KNDS’s products go beyond tanks, incorporating infantry fighting vehicles like Puma and armored personnel carriers such as Boxer and Dingo.

Note: This story was translated from English by an AP editor using a generative AI tool.