Germany has finally decided to acquire a 40% stake in the defense giant KNDS, matching France’s shareholding. This will ensure equal voting rights and influence, including over the production of armored vehicles and Leopard 2A8 tanks.
According to Spiegel, German politicians have finally reached an agreement and defined the government’s official position, with the Ministry of Economy set to oversee the new state-owned assets. The value of the upcoming share purchase agreement is estimated at tens of billions of euros.
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The general aim is to ensure that Germany has the same rights and voting power within the company as France. This will maintain a balance between the parties, which is important for joint defense projects such as the new-generation MGCS tank.
Notably, Germany intends to reduce its stake to 30% over the next two to three years, as originally proposed by the Ministry of Economy, gradually selling off part of its holdings. At the same time, Germany wants France to take the same step.
From Defense Express we would like to note that while the simultaneous sale of 10% stakes will help maintain a balance in the influence of both countries over the defense company, France currently holds 50% of KNDS's shares, which will drop to 40% after the defense giant goes public.
Recently, Franco-German joint military projects have stalled due to disputes over differing industrial needs and priorities. A good example of this is the sixth-generation FCAS fighter jet. Therefore, amid strained relations, convincing France to reduce its involvement may prove difficult.
KNDS plans to go public this year, with the German families behind the former Krauss-Maffei Wegmann (KMW) intending to sell their entire 50% stake. The remaining shares are held by France, which has raised serious concerns in Germany over control of its armored vehicle industry.
The European defense giant is known for its armored vehicles, including the Leopard 2A8, Boxer, Puma, Griffon, and Serval, as well as artillery systems such as the 155-mm CAESAR and RCH 155. At the same time, it participates in numerous defense projects across the continent, making its influence on company decisions highly significant.
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