Talks on KNDS arms maker continue with Germany aiming for 50% stake

Germany is continuing talks on a government stake in Franco-German defence manufacturer KNDS, a spokeswoman for the Ministry for Economic Affairs said in Berlin on Friday.

She described the discussions as "good" but declined to provide details. Germany is seeking a 50% stake in the company to be on a level with France.

KNDS, set up in 2015 through a merger of Germany's Krauss-Maffei Wegmann and France's Nexter, produces the Leopard 2 main battle tank, other armoured vehicles and self-propelled howitzers of both German and French design. It is one of the largest contractors to the German military.

The German government's proposed investment is intended to safeguard technologies, jobs and production sites.

German business daily Handelsblatt recently reported that the deal was expected to be ready for signing in November.

The company is currently jointly owned, with equal 50% stakes held by the German family behind Krauss-Maffei Wegmann and the French state. It employs just over 11,000 people and generated revenue of €4.4 billion ($4.9 billion) in the 2025 financial year.