Germany weighs buying stakes in tank maker KNDS to secure defence technology

The Ministry of Economic Affairs announced that Germany is considering buying shares in the Franco-German defence contractor KNDS to protect strategic expertise in armored vehicle production. The move would be made on a parity basis with the French government, reflecting the firm’s importance for national security. KNDS manufactures the Leopard 2 main battle tank, the Puma infantry fighting vehicle and the Panzerhaubitze 2000 artillery system, all used by the Bundeswehr.

While the broader defence sector enjoys a boom, capital is shifting toward drones, air-defence and long-range missile technologies, causing traditional weapons makers to see falling stock prices. The planned stock market listing of KNDS has been postponed several times, leaving the German family shareholders eager to sell. To avoid a French majority or other unwanted investors, the federal budget has already earmarked up to €7.2 billion for a potential 40 percent stake, and a decision is expected in the coming weeks.