The German government wants to buy a 40% stake in the manufacturer of Leopard tanks

The German federal government has officially announced its intention to acquire a 40% stake in KNDS, a leading German-French defense conglomerate known for manufacturing Leopard 2 tanks, artillery systems, infantry fighting vehicles, and a wide range of ammunition.

Berlin cites the ongoing Russian military threat in Europe and Russia’s war of aggression against Ukraine as the main reasons for this move, which requires an immediate expansion of the defense-industrial complex’s capabilities. 

The German government’s acquisition of a stake in the company will allow Berlin to secure long-term strategic influence over the enterprise, which plays a key role in ensuring the defense capabilities of the entire European continent. The German government emphasized that this transaction is intended to strengthen national technological sovereignty, protect critical military technologies within the country, and reinforce the bilateral partnership with France on an equal footing.

The proposed deal is currently awaiting official approval from the Bundestag’s Budget Committee. At the same time, German authorities note that they plan to partially reduce their stake in the future but will definitely retain equal rights with the French side in managing the defense giant.

This is stated in a press release from the German government.