The German government and the founding families of the armored vehicle manufacturer KNDS appear to have reached an agreement for the complete state takeover of the company. This information was reported by the newspaper Handelsblatt, citing a document from the Federal Ministry of Finance to the Budget Committee, which was classified as a “confidential matter.” According to the document, the Federal Government has reached an understanding with Wegmann regarding the acquisition of 50 percent of the company.
KNDS manufactures vehicles such as the Leopard 2 main battle tank and the Puma infantry fighting vehicle. Currently, the German families Braunbehren and Bode hold 50 percent of the company through the Wegmann Holding; the other 50 percent is held by the French state. The families had long intended to divest their shares. A previously planned Initial Public Offering (IPO) was first postponed in the mid-spring before being canceled in September. To safeguard Germany’s security interests, the government subsequently planned to take over the full 50 percent stake from the families.
It appears a conclusive agreement has now been reached, as noted in the document. The text states that Wegmann aims to sign the purchase agreement in November 2026, with the transaction itself scheduled for implementation in December 2026.
A spokesperson for the Wegmann Holding declined to comment on the information when contacted by the newspaper. The negotiated purchase price is based on the equity value determined within the current valuation climate for KNDS. While the exact amount of money flowing from the state treasury is not specified, the agreed purchase price mechanism will result in the Federal Government paying a significantly lower sum for 50 percent of the shares than was initially approved in June for just 40 percent. The original amount set aside for the government to acquire 40 percent, had the IPO proceeded, was 7.2 billion euros.
