France and Germany have reached a political agreement on how they will share control of KNDS, a major European maker of armored vehicles and artillery—clearing a key hurdle for a long-anticipated stock market listing expected by the end of 2026.
KNDS CEO Jean‑Paul Alary said at the opening day of the Eurosatory defense show that the company wants to move quickly. “The sooner the better: it’s the best scenario for us,” he said, adding that teams are “working with a lot of energy” and that “the board of directors has validated the project.”
The plan remains a dual listing in Paris and Frankfurt, with a targeted valuation now framed at more than €15 billion (about $16.2 billion) and potentially as high as €20 billion (about $21.6 billion).
Paris and Berlin agree on 50/50 governance ahead of a Paris-Frankfurt listing
Until now, the missing piece was political sign-off from the two state stakeholders. That agreement is now in place.
In a joint statement published June 22, 2026, France and Germany said they had agreed to an equal split of the company’s capital and to shared governance rules for the group, which builds the Caesar artillery system, the Leopard tank and the Jaguar armored vehicle. “By setting this Franco-German framework, the two states are taking a decisive step to strengthen their shared sovereignty in land defense,” the two governments said.
French President Emmanuel Macron welcomed the deal, saying: “With Germany, we are today taking a major act of sovereignty for our defense.”
An IPO under pressure, with the Bode-Wegmann family sale and Rheinmetall in the background
On paper, KNDS has a straightforward ownership structure: two shareholders split the company 50/50—on one side, the French state via Giat Industries; on the other, Germany’s Bode‑Wegmann family.
That second half is what has pushed the company toward the market. After years of hesitation, some of the family’s 27 members decided to sell all or part of their stake—together representing 50% of KNDS. That sale is what triggered the IPO process.
The family had sought a valuation of €25 billion (about $27.0 billion). JP Morgan, the bank mandated for the transaction, set a lower range of €18 billion to €20 billion (about $19.4 billion to $21.6 billion). KNDS is a heavyweight, but Rheinmetall remains the European market leader in armored vehicles—and Rheinmetall’s shares are down 25% since January 2026, a backdrop weighing on KNDS’ valuation.
The fight is not only about price. Another flashpoint is who ends up on the shareholder register after the listing. On the French side, the goal is to prevent Rheinmetall from taking a large position in the Franco‑German group during the IPO. Berlin, meanwhile, is aiming for a 40% stake in KNDS after the IPO, according to Les Echos. The June 22 agreement on parity and governance was designed to address that concern.
| Indicateur | Valeur |
|---|---|
| Valorisation visée (fourchette JP Morgan) | 18 à 20 milliards d’euros |
| Valorisation plancher retenue (sources multiples) | Plus de 15 milliards d’euros |
| Places de cotation prévues | Paris et Francfort (double cotation) |
| Part de la famille Bode-Wegmann mise en vente | Tout ou partie des 50 % détenus par 27 membres |
| Part visée par l’État allemand | 40 % |
| Objectif de production | Multiplier par 4 d’ici à 2028 |
Source : Les Echos, La Tribune, Zone Militaire
Industrial ramp-up: quadrupling output and reshaping the balance sheet
For KNDS, the IPO is not an end in itself. The company says it needs the financing to support an unprecedented industrial ramp-up.
The group has set a goal of quadrupling production of tanks and armored vehicles by 2028, particularly to meet orders from the German military. That requires deep modernization of its factories.
Alary, appointed chief executive in April 2025, was given that mission from the start. A former CEO of Safran Aircraft Engines, he put it bluntly at his first press meeting: “KNDS was created ten years ago with the ambition to create a European champion and the conviction that overly national companies would have no future. Now, KNDS must prove that ambition.”
To prepare financially, KNDS recruited Christian Schulz to its board starting January 1, 2026. A former CFO of Renk Group AG, Schulz led Renk’s IPO as well as the listing of Traton, a Volkswagen subsidiary. At KNDS, his job is to bring that experience and restructure the company’s balance sheet ahead of the listing.
The board is chaired by Tom Enders, the former Airbus CEO. At Eurosatory, Enders framed the moment simply: “The time has come and the company is ready.” KNDS also used the show to present the Capint (Capacité intermédiaire), a new tank built on a chassis derived from Germany’s Leopard 2 A8 paired with a French Ascalon remotely operated turret, with entry into service planned for 2030.
Pourquoi l'IPO de KNDS est un acte géopolitique
Defense stocks are strong in 2026, but volatility is shaping the timing
Equity markets have remained supportive for defense companies in 2026, even as Rheinmetall has suffered a sharp pullback since the start of the year. That drop in the main competitor’s stock highlights the sector’s volatility and, for some observers, argues for caution on the exact timing of the deal.
KNDS, however, is sticking to its plan and says it is not waiting for any potential increase in the German state’s stake before moving ahead.
If the IPO lands within JP Morgan’s range, it would rank among Europe’s largest defense-sector listings. For KNDS, access to public capital would also help it compete more directly with Rheinmetall, which already benefits from being publicly traded and from financing capacity KNDS does not yet have.
The Paris-Frankfurt dual listing is also meant to reflect the political balance at the heart of the company: neither France nor Germany should be able to dictate terms to the other. The June 22, 2026 agreement on equal ownership and governance is the concrete step toward that goal—before markets decide the rest.
