Germany plans to take 40% stake in defense contractor KNDS

By the Editorial Team · Tuesday, June 23, 2026

The German government announced plans to acquire a 40% stake in defense firm KNDS, joining France in controlling the key European military manufacturer. This move aims to strengthen Europe's defense industry and enhance strategic autonomy amid security concerns and shifting geopolitical alliances.

The German government announced on Monday its intention to acquire a 40% stake in defense contractor KNDS, a move aimed at bolstering European defense manufacturing alongside France. KNDS, known for producing the Leopard and Leclerc tanks, is a key player in the military-industrial sector within Europe.

Currently, the French state holds a 50% ownership in KNDS, a company established in 2015 through the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The remaining shares are owned by the German family that controls Krauss-Maffei Wegmann. Headquartered in Amsterdam, KNDS reported revenues of $5 billion last year and employs over 11,000 people.

This investment by Germany aligns with broader European efforts to increase defense spending and reinforce military production capabilities amid ongoing security challenges. The conflict in Ukraine and uncertainty regarding the future reliability of the United States as a security partner have prompted European nations to reconsider and strengthen their strategic autonomy in defense matters.

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