Germany to Buy 40% Stake in KNDS Leopard Tank Maker

Turning point for the defence industry Germany will Become an Equal Partner alongside France in KNDS

2026-05-20 From Detlev Karg 1 min Reading Time

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The German government is acquiring a 40 per cent stake in KNDS, the defence group that produces, among other systems, the Leopard 2 tank. The German state would receive “the same rights within the company as the French state”.

KNDS produces, among other systems, the Leopard 2 main battle tank.(Picture: Fric.matej / Wikimedia Commons (CC BY-SA)) — KNDS produces, among other systems, the Leopard 2 main battle tank.
(Picture: Fric.matej / Wikimedia Commons (CC BY-SA))

According to several media reports, the Federal Ministry for Economic Affairs will take the lead role in the transaction. No details were disclosed regarding the exact financial scale of the deal. The sources added that there is “a firm intention” to reduce the 40 per cent shareholding to 30 per cent within two to three years. France, too, is expected to reduce its stake if possible. Under the agreement, Germany would retain equal rights in the company’s management even if its shareholding is reduced.

Family owners withdraw from the company

According to the report, the background to the multi-billion-euro deal is the planned withdrawal of the German Wegmann holding families, which are seeking to sell their shares. Financial circles currently value the KNDS group at between €18 billion and €20 billion. Defence Minister Boris Pistorius first raised the possibility of a state stake in KNDS in July last year. More broadly, he is seeking stronger government involvement in the German defence industry.

An important step for Germany

So far, ownership has been split equally between the German family owners behind Krauss-Maffei Wegmann and the French state. A German government stake would mark the first major shift in the ownership structure: while Paris already holds a direct share in the group, Berlin has so far had no state influence over one of Europe’s most important tank manufacturers. The IPO is scheduled for July.

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