Paris and Berlin have agreed to take equal 40% stakes in KNDS NV, one of Europe's most important defense companies. This move is part of an effort to revive stalled European defense cooperation and strengthen production along with NATO ally France.
KNDS is the Franco-German group responsible for the production of the Leopard 2 and Leclerc battle tanks, as well as the Caesar howitzer. By becoming equal state shareholders, the German and French governments intend to decide on the company's strategy as equals.
The agreement clears the way for an initial public offering in the near future. The remaining shares are expected to be sold to investors through a dual listing in Paris and Frankfurt in the coming days.