France and Germany have agreed to hold equal stakes of 40% each in KNDS NV, a leading European defense company, ahead of its planned initial public offering (IPO) [1, 2, 3]. The German government will acquire a 40% stake from existing family shareholders, matching France’s reduced holding from 50% to 40% [1, 2, 4].
KNDS, known for producing tanks including the Leopard 2 and Leclerc, as well as armored vehicles, artillery, and ammunition currently used in Ukraine, was formed in 2015 through the merger of French Nexter Systems and German Krauss-Maffei Wegmann [2, 3, 5]. The company plans a dual IPO listing on the Paris and Frankfurt stock exchanges, with shares sold directly to institutional investors; no retail offering will be made [6, 4, 3].
The German government’s acquisition depends on approval by the German Parliament’s budget committee, and aims to secure strategic influence through "golden shares" in the German KNDS division to balance governance with France [5, 7]. Provisions for long-term shareholder commitments, equal governance rights, and joint oversight of security matters are integral to the agreement [5].
The IPO is expected to involve selling up to 20% of KNDS’s existing share capital, held by the French state company GIAT Industries and German private holding Wegmann & Co [4]. The company’s valuation ahead of the IPO is estimated between 150 billion and 180 billion euros [2, 3, 8].
French and German governments said, "By setting out this Franco-German framework, the two States have taken a decisive step towards strengthening their common sovereignty in land defence" [2]. A joint statement added the deal "reflects the shared determination of France and Germany to strengthen European industry and defense capabilities, support our armed forces, and sustainably reinforce European sovereignty" [5]. The German government said the agreement will "enhance Europe's defense capabilities with a primary aim to strengthen bilateral and European armament cooperation, where cooperation with France plays a key role" [3].
KNDS CEO Jean-Paul Alary described the company as entering "a new era of defense and security as militaries are modernizing at speed and rebuilding critical land defense capabilities" [4].
The IPO announcement was officially made on June 24, 2026, with a potential listing date set for July 13, 2026, on both Paris and Frankfurt stock exchanges [4, 8, 9].
