The planned state ownership stake by the Federal Government in the tank manufacturer KNDS appears to be faltering, according to reports citing an internal government paper and multiple insiders.
Berlin intends to acquire an interest in the Franco-German company before it lists on the stock exchange, a move intended to safeguard national security interests. However, the federal government faces several unresolved internal questions. Furthermore, the internal document notes that France and KNDS are currently pushing for the initial public offering (IPO) to take place in June 2026, a timeline deemed “extremely ambitious”. Consequently, entering the company after the IPO is not being considered an option by the government.
A central point of disagreement remains the size of the state stake in KNDS. The Ministry of Defence is advocating for an entry with a 40 percent shareholding. Conversely, both the Ministry of Economics and the Federal Chancellery are pushing for approximately 30 percent. Generally, Germany wants the state stake to ensure that KNDS does not fall under the complete control of France. Defence officials argue that the 40 percent minimum is required to ensure parity. Meanwhile, members of the CDU suggest alternative models, such as corporate agreements or a foundation model, arguing that a state stake deemed too high would be detrimental to the company.