Despite earlier plans, Germany and France plan to divide KNDS equally, with each country taking a 50% stake. This could effectively be seen as a form of nationalization.
According to Handelsblatt, which cites its own sources, the company's owners no longer plan to take KNDS public and intend to sell their entire stake to the German government. Price negotiations are currently underway, with a final decision expected in the coming weeks. Reuters later confirmed this information.
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From Defense Express we would like to note that if the deal goes through, it would effectively exceed the German Ministry of Defense's initial request. The German Ministry of Defense had sought a 40% stake in KNDS, while the Ministry for Economic Affairs argued that a 30% stake would be preferable.
However, the 40% figure was proposed at the time as a way to achieve parity with France, which held a 50% stake in the company and planned to sell 10% of its shares on the stock market. If there are no plans for a public listing, an equal split makes sense, as it would ensure equal voting rights for both countries. There would also be no need to worry about attracting investors, which had previously been cited as a problem.
This is important because Germany and France have recently gone their separate ways over the joint development of the next-generation main battle tank, the MGCS. Although the German company Rheinmetall and the French company Thales were also involved in the project, KNDS remained one of the key players.
At the same time, the German division, KNDS Deutschland, retains its tank production capabilities, whereas France no longer has such capabilities at this time. However, KNDS France has developed its own technologies, including the CAESAR self-propelled howitzer.
Overall, the company's product portfolio is quite broad and also includes artillery, armored vehicles, ammunition, and more. It also has a subsidiary in Ukraine that provides maintenance services for its equipment.
n effect, the deal would place KNDS entirely under French and German state control, giving both governments oversight of orders, technology transfers, and cooperation. There will be no third parties in the ownership structure if everything proceeds as currently stated. The German side was previously owned by the families of the Wegmann-Gruppe.
It is worth noting that the 50-50 split applies to the parent holding company as a whole, rather than to the French and German subsidiaries individually. The only exception is a specific share in KNDS France held by the French government.
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