According to Bloomberg’s sources, Germany plans to obtain a 50% share in the Franco-German defense firm KNDS for approximately €6.5 billion.
Per the sources, the Wegmann family, who presently owns a 50% share in the military equipment producer, has consented to sell its holdings to the German government. Consequently, the German and French administrations will share equal ownership of KNDS.
After the deal is finalized, possibly as soon as this year, the company’s intentions for an initial public offering (IPO) will be delayed indefinitely.
Earlier, it was expected that KNDS would offer 20% of its shares to the public. In that situation, Germany was anticipated to obtain a 40% share from the Wegmann family, whereas France would decrease its stake to 40%. The IPO faced several delays because of fluctuations in the defense industry.
According to Bloomberg, the German government has reduced its valuation of KNDS; in June, it was ready to invest around €7.2 billion for a 40% share.
In 2025, KNDS achieved €4.4 billion in earnings. At the close of December, the company had an order backlog of €33.1 billion and employed roughly 11,000 individuals. Revenue is anticipated to increase by approximately 30% by 2026, aiming for a medium-term target of achieving €11–12 billion each year.
Established in 2015 via the fusion of Germany’s Krauss-Maffei Wegmann and France’s Nexter, KNDS ranks among the largest privately owned defense firms in Europe. It manufactures, among other items, Leopard and Leclerc tanks, self-propelled artillery systems, and possesses a division that produces ammunition.
source: bloomberg.com
