UPDATE 1-Germany will acquire 40% stake in tank maker KNDS at listing, German official says

KMW was merged with France's Nexter into KNDS. Berlin, which has ⁠been ​investing billions in rebuilding its military after decades of underinvestment, has been keen to ensure equal sway over the ⁠company with France to safeguard national security interests.

Germany ​will look to acquire a ​40% stake in ‌Franco-German defence ​equipment group KNDS when it lists on the stock market, a German official ‌said on Wednesday, matching the size of France's stake in the maker of the Leopard tank.

Both governments would be expected to ‌reduce their stakes to 30% over the next two to ‌three years but both would hold equal voting rights regardless of the size of each stake, the official, who spoke on condition of anonymity, ⁠said. An ​agreement on ⁠the size of the stakes held by the two governments would resolve weeks ⁠of negotiations over the group, which is jointly owned by the ​French government and the German family owners of the former ⁠Krauss-Maffei Wegmann (KMW). KMW was merged with France's Nexter into KNDS.

Berlin, which has ⁠been ​investing billions in rebuilding its military after decades of underinvestment, has been keen to ensure equal sway over the ⁠company with France to safeguard national security interests. Germany's economy ministry will ⁠manage the ⁠government's side of the transaction in coordination with the defence ministry, the German official said.