France and Germany said Monday they intend to become equal co-shareholders of KNDS, the Franco-German land-arms group central to Europe’s next-generation tank effort—an agreement that also explicitly opens the door to a stock market listing in Paris and Frankfurt.
The move is about more than finance. After the collapse of the Franco-German future combat aircraft program known as SCAF—derailed by years of industrial rivalry—defense cooperation between Paris and Berlin has been looking for a clear signal that big joint projects can still work. KNDS, formed in 2015 from France’s Nexter Systems and Germany’s Krauss-Maffei Wegmann (KMW), is now being positioned as that signal.
Under the deal, the German state will replace the Wegmann family as a shareholder in KNDS, whose headquarters are in Amsterdam. France already controls KNDS through state ownership of Nexter, meaning Paris and Berlin would become two state shareholders with equivalent rights. German government spokesperson Stefan Kornelius declined to specify the size of the transaction.
IPO path opens, with estimates up to €20 billion (about $21.6 billion)
The agreement “explicitly” clears the way for an initial public offering. Bloomberg reported that a simultaneous listing in Paris and Frankfurt would value KNDS at between €15 billion and €18 billion (about $16.2 billion to $19.4 billion). Several financial analysts cited in the report put the range as high as €20 billion (about $21.6 billion), which would make it one of Europe’s largest defense-sector IPOs in recent years.
KNDS CEO Jean-Paul Alary has been publicly eager to move quickly. Asked at the opening of the Eurosatory defense show on June 15, he said: “The sooner the better: it’s the best scenario for us.” He added that the IPO “is still planned in 2026,” saying the board had approved the project and teams were working on it “with a lot of energy.”
Berlin replaces the Wegmann family, creating a state-to-state 50-50 structure
The ownership reshuffle is the core of the deal. Until now, KNDS was jointly controlled by KMW’s former private owners, the Wegmann family, and the French state via Nexter. With Berlin entering the capital in place of the founding family, the group shifts to a Franco-German state duopoly on equal terms.
That symmetry is designed to address the trust problem that SCAF failed to solve. By becoming co-owners on the same footing, Paris and Berlin are signaling they will not tilt decisions toward their respective national champions at the other’s expense—an imbalance that had fueled tensions in the future fighter project.
KNDS has also been preparing operationally for an IPO. The company said Christian Schulz, chief financial officer of RENK, will join its board starting in January, bringing direct experience with public listings. Alary had suggested in September that the German state could take a stake in the group—an idea now confirmed by Monday’s agreement.
MGCS—the future tank program—sits behind the financial mechanics
Behind the market plans is MGCS (Main Ground Combat System), the Franco-German future main battle tank program. KNDS is the central industrial player, with a technical architecture combining a French turret and a German chassis.
That approach was highlighted by the Capint (intermediate capability) vehicle unveiled at Eurosatory on June 15, a prototype drawing on both technology lineages. Entry into service is expected in 2030.
The new “parity” governance is intended to protect MGCS by stabilizing the industrial relationship that the program depends on. A listed company with clearly identified shareholders and balanced governance, the article argues, offers a firmer base for the long-term contractual commitments such a program requires.
European rearmament since 2022 has boosted KNDS orders and revenue
The timing also reflects a broader surge in European defense demand since Russia’s invasion of Ukraine in 2022, as governments rebuild stockpiles and modernize arsenals. KNDS has benefited directly: revenue rose from €3.3 billion in 2023 to €3.8 billion in 2024 (about $3.6 billion to $4.1 billion).
Its order backlog stood at €11.2 billion in 2024 (about $12.1 billion), according to the figures in the article. The Élysée Palace, the office of the French president, said the agreement “also opens the way to a possible IPO of KNDS in the near future.”
Dual listing in Paris and Frankfurt doubles as a political message
Choosing two exchanges is not just about liquidity. Listing in both Paris and Frankfurt would give equal visibility to the two state shareholders and their national financial markets—reinforcing the parity now embedded in KNDS governance.
The precise IPO date has not been announced. Alary declined to provide a specific timeline, saying only that the target remains 2026 and that the group has “not changed its calendar.”
