The German government's plan to acquire a 40% stake in Franco-German arms manufacturer KNDS has been thrown into uncertainty after the company postponed its initial public offering (IPO). KNDS cited the current "volatility of the European defense sector" and said it would wait for "more favorable market conditions" before proceeding.
KNDS, which produces the German Leopard-2 and French Leclerc battle tanks, is currently owned equally by the French state and Germany's Wegmann Group. The IPO, planned for Paris and Frankfurt, was expected to see the French government reduce its stake to 40%, while the German government would acquire 40% of Wegmann's stake for an estimated €7.2 billion ($8.25 billion). The remaining 20% was to be floated publicly.
German Defense Ministry documents had suggested an early July timeline for the IPO, but the entire process has now been shelved. The German government said it respected the company's decision and remained committed to the project. A Defense Ministry spokeswoman stated that the government would "continue to monitor and evaluate" the situation.
Formed in 2015 through the merger of Krauss-Maffei Wegmann and Nexter, KNDS is Europe's largest tank manufacturer, employing around 11,000 people and reporting revenue of €4.4 billion ($5 billion) in 2025. The company is headquartered in Amsterdam, with German operations based in Munich.
Meanwhile, German drone startup Quantum Systems announced it had raised $1.2 billion (€1.05 billion) in fresh funding from international investors, valuing the company at about $8 billion (€6.99 billion). Co-CEO Sven Ruck said the Russian invasion of Ukraine had highlighted the growing importance of AI-controlled drones on the battlefield.
Quantum's backers include US investment firm Blackstone and European aerospace giant Airbus. German Economy Minister Katherina Reiche hailed the investment as a sign that "German defense tech companies are highly attractive for global investors." Regarding a potential IPO, co-CEO Florian Seibel remained cautious, saying the company might conduct another funding round, go public, or simply continue to grow profitably. He also dismissed reports of a merger with Stark Defence but did not rule it out entirely.
Source: www.dw.com