BERLIN (Realist English). The owners of the German family clans Bode and Braunbehrens, who hold 50% of the Franco-German defence conglomerate KNDS (Krauss-Maffei Wegmann + Nexter), have reached a preliminary agreement with the German government to sell a 40% stake in the company. The deal, valued at between €15 and €18 billion, removes the final obstacle to a dual listing in Frankfurt and Paris scheduled for mid-July.
The Deal and Ownership Structure
As a result of the transaction, Germany, through the state development bank KfW, will acquire 40% of KNDS shares, matching the stake held by the French state through Giat Industries, which also owns 40%. Thus, Berlin and Paris will have equal voting rights on strategic decisions — the so-called “parity clause” (Paritätsvorbehalt).
The German family clans Bode and Braunbehrens, descendants of the founders of Krauss-Maffei Wegmann (KMW), are fully exiting the company’s capital. In the IPO, only 20% of shares will be placed on the open market — the remaining 10% from the families and 10% from the French state.
According to Reuters and Bloomberg, the agreement was reached after several weeks of tense negotiations, during which the family clans initially insisted on a premium for their stake, meeting resistance from the German Finance Ministry and the Bundestag’s budget committee. In the end, the sides agreed on a price that will correspond to the market value of shares following the IPO — without any premiums.
Valuation and Timeline
KNDS’s total valuation, according to sources, ranges from €15 to €20 billion, depending on the share price performance in the first weeks of trading. The German government will pay between €6 and €7 billion for its stake. An official announcement of the IPO intention is expected on Wednesday, June 24.
The final listing date has been provisionally set for July 13 — one day before France’s national holiday, Bastille Day, which marks the start of the summer holidays on the Paris stock exchange.
KNDS Financial Performance
The company’s operating performance remains extremely strong. In 2024, KNDS revenue grew 16% to €4.4 billion, while operating profit (EBIT) reached €661 million with a 15% margin. The order book at the end of the year stood at €33.1 billion — more than seven times annual turnover.
In addition, KNDS, together with Leonardo DRS, is participating in a competition to supply 500 artillery systems to the US Army — a potential contract that could become a powerful long-term growth driver.
Bank Consortium and Strategic Significance
The IPO is being organised by Lazard (lead adviser), along with Bank of America, Deutsche Bank, Goldman Sachs and Société Générale.
KNDS Supervisory Board Chairman Tom Enders welcomed the deal but warned that the combined state share of 80% “may only be the beginning,” and that state participation needs to be reduced in the future. Germany has already announced its intention to reduce its stake to 30% within two to three years.
