German Government to Invest €7 bn in Tank Maker KNDS Ahead of Dual Stock Listing

The German federal government plans to acquire a 40 % stake in the Franco‑German tank manufacturer KNDS, the joint venture of Krauss‑Maffei Wegmann and France’s Nexter. Confidential documents show the state may pay up to €7.2 billion, with the transaction to be handled through the development bank KfW. The move is intended to secure long‑term supply of Leopard 2 tanks and support the Main Ground Combat System (MGCS) programme, while providing a counterweight to rival Rheinmetall.

At the same time, KNDS has announced a dual primary market listing in Paris and Frankfurt. About 20 % of the company's share capital will be sold to institutional investors in a secondary offering; the remaining 80 % will stay split evenly between the French state (via GIAT Industries) and the German state (via KfW). A German “golden share” gives Berlin a veto over strategic decisions. In 2025 the group reported revenue of €4.4 billion, an operating profit of €661 million and a record order backlog of €33.1 billion, underpinning the financing rationale. The IPO is positioned as a new model for European rearmament funding, bringing private capital into a strategic defence asset while keeping state control.