Czech defence company CSG remains actively engaged in talks to acquire a stake in Franco-German tank manufacturer KNDS, according to the group's chief executive. The discussions signal CSG's continued interest in expanding its European defence portfolio beyond ammunition manufacturing into heavy military equipment.

KNDS represents one of Europe's leading armored vehicle producers, formed through the merger of German and French defence businesses. CSG's pursuit comes amid heightened European defence spending following Russia's invasion of Ukraine, creating opportunities for consolidation in the sector.

The potential deal would mark a significant strategic shift for the Czech group, moving from ammunition supply to full-spectrum military vehicle capabilities. Such a partnership could strengthen European defence industrial cooperation while providing CSG with access to advanced tank technology and broader international markets.

CSG's ongoing negotiations reflect the broader trend of European defence companies seeking scale and integrated capabilities amid evolving security challenges. The outcome will likely influence future defence procurement strategies across NATO allies.