Sources indicate that the Federal government has reached a unified agreement regarding its potential entry into KNDS, the Franco-German tank manufacturer. According to the newspaper “Spiegel”, which cites sources within government and corporate circles, the relevant State Secretaries from the Federal Ministries of Defence and Economic Affairs reportedly sent a letter to the owners’ families late last week.
These letters concern the owners’ accumulated shares in the Wegmann corporate holding. The Federal government intends to acquire between 30 and 40 percent of the company’s shares, and negotiations with the owners are expected to commence shortly.
KNDS, which has its holding headquarters in Amsterdam, is a combined entity originating from the French company Nexter and the Munich-based armored vehicle builder Krauss-Maffei Wegmann, which produces tanks such as the Leopard 2, Puma, and Boxer. Although KNDS plans to go public later this year, the owner families are also intending to divest their holdings.
In the past months, internal disagreements arose within the cabinet over the precise nature and level of the state’s involvement. Initially, figures like Federal Chancellor Friedrich Merz and Economic Minister Katherina Reiche (both CDU) advocated for limiting the federal participation to a maximum of 30 percent. However, Defence Minister Boris Pistorius (SPD) had initially argued for a higher participation stake of 40 percent.
Despite the advances, spokespersons for the Defence Ministry declined to comment on any current internal governmental discussions regarding this matter.
