Germany Takes 40% Stake in Franco‑German Tank Maker KNDS Ahead of Dual IPO

The German government announced it will acquire a 40 % equity stake in KNDS, the Franco‑German joint venture that produces the Leopard 2 and Leclerc main battle tanks, as well as the Puma IFV and Boxer/Dingo armored vehicles. France will cut its existing 50 % holding to 40 %, creating an equal ownership structure between the two states. The deal is described as a decisive step toward strengthening European land‑defence sovereignty and is intended to pave the way for a dual stock‑market listing in Frankfurt and Paris, projected for mid‑2026. KNDS, formed in 2015 by merging Krauss‑Maffei Wegmann and Nexter, reported €4.4 billion in revenue for 2025 and employs over 11 000 people. The governments plan to reduce their holdings to around 30 % after the IPO while retaining equal voting rights. The partnership aims to boost production capacity, secure technological independence and support ongoing orders driven by the war in Ukraine and rising European defence budgets.