France and Germany agreed Monday to take equal 40% stakes in KNDS, with Berlin acquiring a 40% stake and Paris trimming its current 50% share, clearing the path for the Franco-German tank maker’s potential dual stock listing next month.
France will cut its existing 50% stake to 40%, while Germany will acquire a matching holding from the family that controls Krauss-Maffei Wegmann (KMW), KNDS’s German founding firm and its sole private shareholder. The transaction requires German parliamentary budget committee approval, which is expected today, Wednesday, government spokesperson Stefan Kornelius said.
In a joint statement, both governments described the deal as “a decisive step towards strengthening their common sovereignty in land defence,” with core principles covering “long-term shareholder commitment, parity in governance rights, and appropriate oversight of security matters.”
The ownership shift marks the first time the German state will hold direct equity in KNDS since the company’s 2015 formation. Both governments plan to trim their holdings to around 30% within two to three years of any listing while retaining equal voting rights.
The joint statement said the deal “paves the way for a possible IPO of KNDS in the near future,” with a dual Frankfurt and Paris listing targeted for July. KNDS posted €4.4 billion ($4.8 billion) in revenue in 2025, up 16%, with an order backlog of €33.1 billion.
Founded through the merger of KMW and France’s Nexter Systems, KNDS employs more than 11,000 people and also manufactures the Puma infantry fighting vehicle (IFV) and Boxer and Dingo armored personnel carriers (APCs).
On June 23, KNDS delivered the first upgraded Stridsvagn 123A main battle tank to Sweden’s defense procurement agency, Försvarets materielverk (FMV), under the REMO program, which covers all 110 Swedish Leopard 2s and runs through 2030.
