Significant changes are looming in the ownership structure of the Franco-German tank manufacturer KNDS. According to information obtained by Börsen-Zeitung from company circles and former government officials, the Bode and Braunbehrens families, who currently hold shares in the company, plan to gradually withdraw and sell their stakes. As a result, the German federal government is preparing for the possibility of acquiring a blocking minority stake, according to people familiar with the matter. KNDS is estimated to be worth around 20 billion euros.

The group, headquartered in Amsterdam and mainly known for producing the „Leopard 2“ tank, was formed in 2015 through the merger of Krauss-Maffei Wegmann (KMW) and the French company Nexter. Wegmann Unternehmens–Holding, owned by the Bode and Braunbehrens families, currently holds 50% of KNDS, while the other 50% is held by the French state-owned investment holding APE.

According to the scenario currently under consideration, the French state and Wegmann plan to each sell 12.5% of their existing shares to new investors in the anticipated IPO of KNDS, which could take place later this year. In addition, the German federal government could acquire a blocking minority stake of 25.1% from Wegmann.

Negotiations on behalf of the Wegmann shareholder committee are being led by Chairwoman Ingrid Jägering, who also sits on the KNDS board and serves as CFO of saw manufacturer Stihl in her primary occupation. On the German government side, Levin Holle, department head in the Chancellery and former CFO of Deutsche Bahn, as well as Jens Plötner, the current State Secretary for Defense and former adviser to Chancellor Scholz, are handling the matter. The previous German government had already prepared for the issue, according to reports from former cabinet members. KNDS spokeswoman Veronique Creissels, the German government, and APE all declined to comment when asked. Spokespersons for the Wegmann Group were initially unavailable for comment.

The federal government is considering taking a stake because the withdrawal of the families from KNDS would disrupt the balance of power between Germany and France. Whoever holds sway over the tank manufacturer effectively decides where, in an era of annual triple–digit billion–euro defense budgets, new jobs are created and investments are made. A federal stake is also considered urgent because Germany is supposed to take the lead in developing the new European battle tank (MGCS). In return, France was granted leadership over the new European fighter jet project.

Direct state involvement in the defence industry is growing. The German government already holds a 25.1% stake in stealth technology company Hensoldt, based in Taufkirchen, via the state-owned KfW bank. Recently, it also secured a preemptive right to acquire shares in submarine manufacturer TKMS, a Thyssenkrupp subsidiary planning an IPO. Moreover, KNDS itself holds a 25.1% stake in Renk, the Augsburg-based tank transmission manufacturer. In 2024, KNDS reported a 40% increase in orders, reaching 11.2 billion euros.