Berlin and Paris weigh full state control of tank maker KNDS

The uncertainty follows a sudden freeze on IPO plans earlier this July. The original roadmap, unveiled just one month prior, would have seen the French state and the founding families each divest 10% of their holdings, with the families planning to offload their remaining 40% stake to the German government. While the German economy ministry officially maintains that it still favors a timely listing and the original June agreement, internal discussions regarding alternative ownership structures have emerged.

Defense Minister Boris Pistorius has signaled a clear priority: securing long-term German influence over the manufacturer of the Leopard 2 tank. Any shift toward full nationalization would require a delicate balancing act with French partners to ensure both nations remain on equal footing. KNDS, formed through the merger of Krauss-Maffei Wegmann and Nexter, remains a linchpin of continental security, reporting €4.4 billion in revenue for 2025 and a massive order backlog of €33.1 billion.