Germany approves €7.2 bn stake in tank maker KNDS

The German Bundestag’s budget committee gave the green light for the federal government to acquire a 40 % share in the Franco‑German defence firm KNDS, authorising a special allocation of up to €7.2 billion. Under the agreement, Germany and France will each hold equal ownership of the company that produces the Leopard 2 main battle tank and the Panzerhaubitze 2000 artillery system.

Supporters highlighted job protection and long‑term know‑how for Germany. Christian Haase, senior Treasury spokesperson for the governing coalition, said, "It’s about jobs in Germany and securing this expertise for the future." Green MP Sebastian Schäfer warned of "significant risks" linked to the upcoming stock market listing, adding that the state‑run purchase could put the government in a negotiating disadvantage.

KNDS, formed from Krauss‑Maffei Wegmann and France’s Nexter, employs roughly 11,000 people, generated €4.4 billion in revenue last year and supplies more than 40 armies worldwide. The firm plans to list shares on the Frankfurt and Paris exchanges in the coming weeks.