Defense giant KNDS moves closer to IPO after France-Germany stake deal

MUNICH, GERMANY - APRIL 22: A Leopard 2 tank stands on the KNDS company grounds at the inauguration of the new assembly line for the Boxer armoured fighting vehicle at the KNDS factory on April 22, 2026 in Munich, Germany. The Bundeswehr, the German armed forces, is planning to acquire up to 3,000 Boxer vehicles in several variants as part of its modernization and expansion program. (Photo by Leonhard Simon/Getty Images) Leonhard Simon | Getty Images News | Getty Images France and Germany have agreed on a framework in which the German government will take a stake in defense manufacturer KNDS, ahead of a potential multi-billion-euro IPO by the company. KNDS is one of Europe's largest producers of military equipment, including armoured vehicles and ammunition used in Ukraine. The company is viewed as a key to the continent's rearmament push that has benefited defense companies like Rheinmetall , Saab , and BAE Systems . "By setting out this Franco-German framework, the two States have taken a decisive step towards strengthening their common sovereignty in land defence," the French and German governments said in a joint statement on Monday. Why Germany is seeking a KNDS stake Germany is now seeking to acquire a 40% stake in KNDS from family shareholders, the country's government said in a separate statement. …