Germany to Buy 40% Stake in Tank Maker KNDS
Germany plans to buy a 40% stake in defense company KNDS. KNDS makes Leopard and Leclerc tanks.
France already holds a 50% stake in KNDS. France is expected to reduce its share to 40% to match Germany.
Germany is buying its share from the Wegmann family. The two countries want to strengthen European defense production together.
The deal is part of a framework agreement. This agreement also moves KNDS closer to a stock market listing.
Earlier talks had stalled over pricing before this deal was reached. KNDS was formed in 2015 through a merger of German and French tank makers.
The company is based in Amsterdam in the Netherlands. It has over 11,000 workers and €4.4 billion in yearly revenue.
Klear Note — KNDS makes tanks used by many European armies. Germany and France are Europe's largest defense makers. They're combining control to build stronger European military production.
Key Terms 4
- KNDS A European defense company that makes Leopard and Leclerc tanks
- stake A share of ownership in a company
- IPO When a company sells shares to the public on a stock market
- framework agreement A deal that sets the rules for a bigger deal to follow