The federal government and the owner families agree on the purchase price at KNDS

The federal government has reached an agreement in principle with the current owner families about the federal government investing in the German-French tank builder KNDS. The ARD capital studio learned this from government circles.

The families of the tank builder from Munich have been trying to sell their shares in KNDS for a long time. Initially this was supposed to happen through an IPO, but the plans were postponed and completely canceled in the fall. The Braunbehrens and Bode families hold 50 percent of KNDS through the Wegmann Holding, while the French state holds the other 50 percent.

Government circles are now saying that they are planning to invest the same amount as France, 50 percent, in order to be on an equal footing with their partner. For confidentiality reasons, no details could be given about the agreement reached. The Handelsblatt was the first to report on the agreement, which should be ready for signing in November. KNDS and the families did not comment.

Purchase price under 7.2 billion euros

It is unclear how much money the federal government will put on the table. A briefing for the Bundestag's budget committee available to the Reuters news agency only shows that the federal government will pay less than originally planned. The committee approved the purchase in June for a price of 7.2 billion euros for just 40 percent.

The Federal Ministry of Economics did not want to confirm an agreement yet, but emphasized the importance of the "Leopard 2" and "Boxer" manufacturer for the country's security interests. By joining KNDS, the government wants to ensure the protection of key defense industry technology in tank construction. The Bundeswehr is KNDS's largest customer.

At times, the owner families had also flirted with a sale to foreign investors - including the Czech defense company Czechoslovak Group (CSG) and the US private equity investor Warburg Pincus. Now the families are said to have received a package surcharge as well as a share of the dividend for 2026 that the federal government collects.

Another attempt at an IPO?

The federal government is nevertheless sticking to the stock exchange plans, which KNDS itself is also insisting on being implemented as quickly as possible. It was said that it was agreed with France to reduce the respective holdings by ten percent. This would also be an opportunity for the federal government to reduce state participation if the share price is cheap.

KNDS was created in 2015 through the merger of Krauss-Maffei Wegmann and the French company Nexter. The group employs a good 11,000 people and achieved sales of 4.4 billion euros in the 2025 financial year. The headquarters is in Amsterdam, the German headquarters are in Munich. In Kassel, KNDS operates three production sites and one logistics site.