KNDS expected to become state-owned as German owners pivot from IPO

The German-French tank manufacturer KNDS is expected to transition into a state-owned enterprise. According to reports, the original plan for an initial public offering (IPO) is no longer being pursued.

Instead, the German owners, the Braunbehrens and Bode families via the Wegmann-Holding, intend to sell their 50 percent stake to the German federal government. A final decision regarding the transaction is expected within the coming weeks, with negotiations currently focused on the purchase price.

The decision follows several delays to the planned IPO, which was driven by a difficult market environment for defense stocks. Owners reportedly saw little chance of achieving the previously hoped-for proceeds of at least 15 billion euros. The German government views the acquisition of the family holdings as a way to prevent French dominance within the company, which also produces the Leopard 2 battle tank.