Germany and France Expand Joint Control of KNDS to Boost European Defence Capacity
Poinews.com – On Monday, the German government revealed plans to increase its ownership in KNDS, a major defence contractor, to 40%, aligning with France’s strategic push to strengthen European military production. This collaboration with France, a key NATO and EU partner, aims to ensure a stronger industrial footprint in the continent’s security sector.
KNDS: A Merged Force in European Rearmament
Formed in 2015 by the union of Germany’s Krauss-Maffei Wegmann and France’s Nexter, KNDS has become central to Europe’s rearmament drive. While France initially held a 50% stake, the German family owning the other half has agreed to divest, paving the way for state-backed investment in the firm.
Based in Amsterdam, KNDS reported €4.4 billion in revenue last year and employs over 11,000 workers. The decision underscores a continent-wide effort to enhance military spending and manufacturing capabilities, driven by ongoing tensions from Russia’s conflict in Ukraine and concerns over U.S. security commitments.
Strategic Alignment and Governance
“Berlin framed the investment in explicitly strategic terms, saying it would secure lasting influence over a business it considers vital to European security and defence.”
Germany emphasized that the stake would reinforce domestic industrial output, technological self-reliance, and the protection of critical national security interests. In a joint statement, both governments outlined shared strategies for KNDS’s future, aiming for co-ownership with equal shareholdings.
While details on the timeline remain unspecified, the agreement signals potential for a public listing in the near term. According to sources close to the deal, the two nations plan to reduce their stakes to approximately 30% within two to three years of such a move, though they will retain equal voting rights regardless of ownership levels.
From Tanks to Vehicles: KNDS’s Broader Role
State involvement in KNDS was first proposed by German Defence Minister Boris Pistorius in 2025. Beyond its iconic Leopard tanks, the company produces the Puma infantry fighting vehicle and the Boxer and Dingo armoured personnel carriers—equipment in high demand as European armies replenish stocks lost during years of underinvestment and donations to Ukraine’s military.
