Berlin entered talks to acquire a 40% stake in Franco‑German tank maker KNDS, clearing the way for a summer IPO. The government would buy the shares from German families that own half of the Amsterdam‑listed firm, while the French state, currently at 50%, would trim its holding to match Berlin’s. Both parties aim to reduce their stakes to 30% within two to three years.

Investors have been told KNDS targets a market capitalisation of €15bn to €20bn after the float. Chair Tom Enders said the post‑IPO structure would leave the company 80% state‑controlled, but pledged to cut public ownership over time through contracts and security agreements. The move safeguards Berlin’s influence over Leopard‑2 tank supply to the Bundeswehr while preventing Paris from dominating plant decisions.

KNDS recently sold most of its stake in gearbox maker Renk, raising about €262 million and shrinking its holding to roughly 10%. The cash bolsters the balance sheet ahead of the listing. With Berlin and Paris each set to own 40% after the deal, the consortium will remain the dominant European armoured‑vehicle supplier, positioning it for further consolidation.