France and Germany have reached an agreement on equal stakes in KNDS NV, which is preparing for an IPO. The deal values the company at €15–18 billion.
Briefly about the main points
- France and Germany have agreed on equal stakes in KNDS ahead of the IPO.
- KNDS is valued at €15–18 billion, depending on the share price.
- Germany plans to reduce its stake in KNDS in the future.
- The agreement emphasises cooperation between the countries in the defence industry.
- KNDS supplies the army with tanks, armoured personnel carriers and robotic systems.
Cooperation between France and Germany in the defence industry
France and Germany have concluded an agreement on equal shares in KNDS NV, one of Europe’s leading defence companies, which is preparing for an initial public offering. According to both governments, Germany plans to acquire 40% shares in the company, underlining the countries’ efforts to strengthen Europe’s defence capabilities.
According to message Bloomberg, Germany has reached an agreement with the family owners of KNDS regarding the purchase of a stake. The deal values KNDS at between €15 billion and €18 billion, depending on how the share price performs after several weeks of trading. However, this deal must be approved by the German parliament.
KNDS, which is headquartered in Amsterdam, plans to carry out one of the largest IPOs in Europe in recent years. The French state holds 50% of KNDS shares and plans to reduce its stake to approximately 40% during the IPO. This deal marks an important milestone in the cooperation between France and Germany, which had previously faced difficulties over the joint FCAS fighter jet project, which was officially cancelled due to disagreements over the distribution of the workload and intellectual property.
KNDS welcomes the agreement between the governments, noting that it preserves the autonomy necessary for the successful management of the company. Germany plans to reduce its stake in KNDS in the future, whilst retaining the same management rights as France. The company supplies armies with tanks, armoured personnel carriers, portable bridges and robotic systems; in particular, it is involved in the joint development of the Main Ground Combat System, a main battle tank designed to replace the German Leopard and French Leclerc tanks.
The agreement reflects the shared determination of France and Germany to strengthen industrial and Europe’s defence capabilities, to support its armed forces and safeguard European sovereignty in the long term. In 2025, KNDS’s revenue rose by 16% to €4.4 billion, whilst its order book stood at €33.1 billion at the end of the year, reflecting growing demand for the company’s products.