Published on 22/06/2026 – 13:32 GMT+2
The German government announced on Monday its intention to acquire a 40% stake in the defence contractor KNDS, a move aimed at strengthening European arms production in cooperation with its NATO and EU ally France.
The decision deepens state involvement in a company whose hardware has become central to Europe’s re‑armament efforts. KNDS was formed in 2015 through the merger of Germany’s Krauss‑Maffei Wegmann and France’s Nexter. The French state currently holds a 50% stake, while the remaining half belongs to the German family behind Krauss‑Maffei Wegmann. The family’s planned exit has opened the door for Berlin to step in.
Headquartered in Amsterdam, the group reported revenue of €4.4 billion last year and employs more than 11,000 people. The investment reflects a broader European push to expand military spending and manufacturing capacity as governments weigh the ongoing threat from Russia’s war in Ukraine against growing doubts about the reliability of the United States as a security guarantor.
Berlin framed the acquisition in explicitly strategic terms, emphasizing that it would secure lasting influence over a business deemed vital to European security and defence. The German government added that the stake would reinforce domestic industrial output, technological independence, and the safeguarding of key national security interests and technologies.
In a joint statement, Germany and France said they had agreed on the future strategy and governance of KNDS, intending to co‑own the firm through arrangements that aim to give both countries equal shareholdings.
Clearing the Path to a Stock‑Market Listing
Neither government specified a timeline or final holding level, but they stated the agreement opens the way for a possible flotation of KNDS in the near future. According to people familiar with the matter cited by the Associated Press, the two states plan to reduce their stakes to around 30% within two to three years of any listing, while retaining equal voting rights regardless of each holding’s size.
The two governments cast the deal as a joint commitment to building up Europe’s defence industry and armed forces, and to securing the continent’s strategic independence well into the future. State participation in the firm was first floated by German Defence Minister Boris Pistorius in 2025 as a way to protect strategic expertise and jobs.
Beyond its tanks, KNDS also manufactures the Puma infantry fighting vehicle and the Boxer and Dingo armoured personnel carriers—equipment in growing demand as European armies replenish stocks depleted by years of underinvestment and donations to Ukraine’s defence.
Additional sources • AP