Germany, France could take KNDS under full state control, Handelsblatt says

Germany is considering taking tank maker KNDS under full state control jointly with France, amid uncertainty over the company's future ownership following a delayed initial public offering.

Germany is ‌considering the option ​of taking tank maker KNDS under full state control jointly with France, German newspaper Handelsblatt reported on Tuesday, citing German government ‌sources.

The newspaper added that unspecified alternatives were also being discussed. The Franco-German defence contractor's future ownership became uncertain in early July when plans for an initial public offering were put on hold.

The planned listing, ‌which was announced in June, would have been among the European defence sector's largest ‌IPOs in recent years with KNDS's family owners and the French state, which both hold 50% of shares, each selling 10% to investors. The families had also intended to sell their remaining 40% stake to the German state.

Germany's economy ⁠ministry ​told Reuters it would ⁠not comment on individual press reports. "Germany remains interested in a timely IPO and a federal investment in KNDS while ⁠maintaining the process agreed upon in June," it said, adding that France and Germany had reaffirmed their commitment ​to the listing plans last month.

The families and KNDS declined Reuters' requests for comment. ⁠A spokesperson for the French finance ministry did not immediately respond to a request for comment. After the listing ⁠plans ​were paused, German Defence Minister Boris Pistorius said he wanted to secure German influence over KNDS and that the government would talk with French partners, who would be "on an equal ⁠footing".

KNDS, created by the combination of Germany's Krauss-Maffei Wegmann and France's Nexter, generated revenue of €4.4 billion ($5.07 ⁠billion) in 2025 ⁠and ended the year with an order backlog of €33.1 billion. ($1 = 0.8675 euros)