Sources indicate that the German federal government has reached a consensus on how to enter the armored vehicle manufacturer KNDS. According to reports citing both government and corporate circles, officials from the federal ministries of Defence and Economic Affairs penned a letter to the company’s owning families late last week with a formal offer.
The owners, who have consolidated their stakes through the Wegmann corporate holding, are now subject to an offer of a 30 to 40 percent shareholding in the company. Negotiations are expected to begin with the founding families.
When approached by “Der Spiegel”, both ministries declined to comment on the ongoing government committee discussions, a spokesperson for the Ministry of Defence stated. KNDS, which has its holding headquarters in Amsterdam, originated from the French firm Nexter and the Munich-based tank manufacturer Krauss-Maffei Wegmann. It is the developer of popular tanks like the Leopard 2, Puma, and Boxer. While KNDS plans to go public later this year, the owning families are reportedly intending to divest their shares.
Significantly, the process of the state’s investment has caused internal disagreements within the government over the past months. Chief among the differences are the target percentages: Chancellor Friedrich Merz and Economy Minister Katherina Reiche (both CDU) advocate limiting the federal stake to a maximum of 30 percent, while Defence Minister Boris Pistorius (SPD) has advocated for a higher involvement, specifically 40 percent.