Equal Stakes Planned in Key Arms Maker
France and Germany have reached a major agreement on the joint governance of European arms manufacturer KNDS.
The deal is expected to pave the way for a major share offering and strengthen defence cooperation between Paris and Berlin.
Under the agreement, both countries aim to hold equal stakes in KNDS.
The company produces tanks, artillery systems and armoured vehicles for European militaries.
Its portfolio includes Leopard 2 tanks, Leclerc tanks and other key military equipment.
Officials said the agreement reflects a shared commitment to strengthening Europe’s defence industry and strategic independence.
Deal Comes Amid Security Pressure in Europe
The announcement comes at a sensitive time for Europe.
The continent is facing growing security concerns linked to Russia and uncertainty over future defence ties with the United States.
France and Germany said the deal would support their armed forces and reinforce European sovereignty.
The German government said cooperation with France remains central to strengthening European armaments collaboration.
The agreement also comes shortly after the collapse of the Franco-German FCAS fighter jet project.
That failure had raised concerns about the future of major European defence cooperation efforts.
IPO Could Value KNDS at Billions
KNDS was created in 2015 through the merger of French and German defence companies.
The French government currently owns half of the company through a holding structure.
The remaining shares are held by Germany’s Wegmann family.
The German owners have been seeking to sell their stake, leading to negotiations with Berlin.
The new agreement could allow KNDS to move forward with a dual stock market listing in Paris and Frankfurt.
Reports suggest the company could be valued between 15 billion and 20 billion euros.
KNDS Chief Executive Jean-Paul Alary said the agreement confirms the company’s strategic importance for Europe’s defence capability, industrial base and technological sovereignty.
The deal may also improve prospects for the Main Ground Combat System project, a joint Franco-German plan to develop a new battle tank.
