Changes at the German-French giant. The state will take over the Leopard tank producer

Within the KNDS group, the government of the French Republic holds a 50% stake. Now, the government of the Federal Republic of Germany also plans to acquire 50% of the shares on the German side. As reported by the Hartpunkt portal, it was originally planned that 20% of KNDS shares would be floated on the stock exchange, while France and Germany would each hold 40% of the shares. This plan will not be implemented due to what has been described as an “unfavourable market environment.” Consequently, everything indicates that the French Republic and the Federal Republic of Germany will each hold a 50% stake in the KNDS consortium. It is noted that if this plan is realised, the German government will gain significant influence over the manufacturer of key military equipment for the Bundeswehr (German Armed Forces).

KNDS Deutschland, which forms part of the consortium, is the manufacturer of Leopard 2 tanks and PzH 2000 self-propelled howitzers. Furthermore, in cooperation with Rheinmetall, it produces Puma infantry fighting vehicles and Boxer wheeled armoured personnel carriers—essentially all the primary armoured fighting vehicles used by the Heer (German Army). It is therefore understandable that the government of the Federal Republic of Germany wishes to secure its interests by acquiring half of the shares in the entire KNDS consortium, following a similar principle to that of the French government (where a large portion of the defence industry is state-owned or the state holds significant stakes in companies).