Germany to pay €6.6 billion for 50% of KNDS — Der Spiegel
Germany will pay €6.6 billion to acquire 50% of the shares in the Franco-German defence group KNDS, which are owned through the Wegmann holding company by the Bode and Braunbehrens families. Der Spiegel reports on the amount of the deal, citing parliamentary circles.
The German government has agreed with the owners to buy out their stake, which amounts to 50% of the company. The contract is expected to be signed in November. The deal is intended to give the German state influence in KNDS, as well as protect and retain in Germany the intellectual property for weapons systems, including the Leopard tank, the Boxer wheeled armoured vehicle and the Puma infantry fighting vehicle.
Company valuation and additional payment
According to the publication, KNDS was valued at €11.2 billion before its planned stock market listing. Half of this amount is €5.6 billion, with the government adding another €1 billion to the value of the stake. The additional payment is explained by the fact that part of the expected annual profit would have gone to the owner families. In 2025, KNDS earned nearly €1 billion.
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The owner families initially considered a stock market listing, but abandoned the plan after the value of defence companies fell on the stock market. According to a confidential notification from Germany’s Finance Ministry to parliament, the Wegmann holding company could also have considered selling the stake to foreign investors. Czech CSG Group was among those that expressed interest in KNDS.
Plans for the stake and major orders
Plans for a KNDS stock market listing after the German state enters its capital have not been cancelled. The government intends to reduce the stake of each side by 10% together with France in the near future. At the same time, Germany is the group’s most important customer: last year, the Bundeswehr procurement agency ordered 200 Puma vehicles for €4.2 billion, as well as 105 Leopard 2 tanks for nearly €3 billion.
A possible order under the Arminius programme, which provides for the purchase of 1,800 Boxer armoured vehicles in the first batch, remains important for KNDS. Negotiations on this order have been delayed due to disagreements over the price and scope of work. An agreement may be reached next year if the industry makes concessions.
