Germany seeks 40% stake in weapons maker KNDS to gain influence
Germany is seeking a 40% stake in tank and weapons maker KNDS, to be reduced to 30% within two to three years.
Acquiring a 40% stake in KNDS will grant Germany equal operational rights with France, bolstering its influence over key military supply chains amidst European rearmament efforts.
“Under the agreement, Germany will obtain the same rights as the French state, ensuring a balanced shareholding structure as we navigate future developments.”
German state to secure 40% stake in KNDS weapons firm, sources say
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The German state is seeking a 40% stake in the tank and weapons maker KNDS, government sources familiar with the matter revealed to AFP on Wednesday.
According to an “agreement reached regarding the state’s participation in KNDS”, this stake is to start at 40% and then be reduced to 30% within “two to three years”, a source said.
KNDS is currently effectively controlled by the French state, as it is part-owned by French public holding company GIAT Industries, with Germany’s Wegmann family owning the other part.
The company had been planning an initial public offering, at a time when defence stocks are booming with Europe racing to re-arm. The German government had said it was examining an investment in the group, in a bid to gain more influence over it.
Under the agreement, Germany will obtain the same rights as the French state, including after its stake is lowered, the source said.
France is meanwhile to reduce its own stake “insofar as possible”, they added. Berlin is set to buy shares at the initial public offering price.
KNDS is a key supplier to both the German and French militaries, making equipment including the Leopard 2 battle tanks and Caesar howitzers.
It was created in 2015 through a merger of France’s Nexter and Germany’s Krauss-Maffei Wegmann firms.
Additional sources • AFP