German-French defence firm KNDS to be partially nationalised ahead of €18‑20bn IPO

The German‑French land‑defence conglomerate KNDS, created from the 2015 merger of Krauss‑Maffei Wegmann and Nexter, is preparing an initial public offering in Frankfurt and Paris slated for this summer. Both the German and French governments intend to acquire 40% of the company's shares each, leaving 20% for private investors. The IPO is projected to raise between €18 billion and €20 billion, valuing the firm at roughly €20 billion. Currently, the French state holds 50% of KNDS while the remaining half is owned by the Wegmann family, which has announced a complete withdrawal from the group.

Legal counsel for the transaction includes Freshfields for KNDS and CMS for the German government’s participation. The move is designed to secure German influence over the defence champion, which supplies main battle tanks such as the Leopard 2 and other armoured vehicles, and mirrors earlier partial state ownership models like that of Airbus. The French state’s stake will be reduced to 40% to match its German counterpart, creating a balanced public ownership structure across the two nations.