Germany considers nationalizing defense group KNDS

The German government is negotiating to acquire a 50 percent stake in the defense company KNDS, a move that would lead to 100 percent state control of the firm since the French government already owns the other half. KNDS was formed in 2015 through the merger of France's Nexter and Germany's Krauss-Maffei Wegmann (KMW).

The company is a critical component of the European defense industry, producing major hardware such as the Leopard 2 and Leclerc main battle tanks, the Panzerhaubitze 2000, and the Boxer armored vehicle. KNDS employs approximately 11,000 people, with revenues reaching 4.4 billion euros in fiscal year 2025 and projected to rise to between 11 billion and 12 billion euros in the medium term.

Negotiations are ongoing regarding the purchase price for the German portion of the company, which is currently held by the Wegmann Group. Private owners had previously sought up to 15 billion euros for their stake, a valuation that contributed to the collapse of a planned IPO. German leadership, including Defense Minister Boris Pistorius, aims to secure this key strategic asset to maintain domestic control over military technology, prevent French dominance, and ward off unwanted foreign investment.