BERLIN — The German government announced Monday its intent to acquire a 40% stake in defense contractor KNDS. The move aims to align with the French government's ownership by establishing equal national shareholding and strategic control over the company.

Multiple media reports indicate that the French government is anticipated to decrease its current 50% holding in KNDS to 40%. The French state presently holds a 50% stake in KNDS, with the other half held by the German family behind Krauss-Maffei Wegmann. The German government specified that it is seeking to obtain its 40% stake from these family shareholders.

KNDS, headquartered in Amsterdam, was formed in 2015 through the merger of Germany's Krauss-Maffei Wegmann and France's Nexter. Its product line includes Leopard and Leclerc tanks, Puma infantry fighting vehicles, and Boxer and Dingo armored personnel carriers. The company reported 4.4 billion euros in revenue last year and employs more than 11,000 individuals. Bloomberg cited people familiar with the matter saying that KNDS could be valued at between 15 billion euros and 18 billion euros.

In a joint statement, the German and French governments confirmed an agreement on KNDS's strategy and governance. The statement outlined that the governments "intend to become joint shareholders through transactions aiming at equal shareholding levels for both countries." This accord also prepares for a potential initial public offering (IPO) of KNDS in the near future.

The German government stated that its planned stake "will secure long-term influence on a company that is strategically significant for European security and defense capability." A statement translated from German reiterated this, noting that "A stake by Germany in KNDS will secure long-term influence over a company that is strategically important for European security and defense capabilities." The German government added in a statement that "national industrial value creation, as well as technological sovereignty and the protection of security interests and key technologies in Germany" also will be strengthened.

The two governments affirmed their agreement "reflects the shared determination of France and Germany to strengthen Europe’s industrial and defense capabilities, support their armed forces, and strengthen European sovereignty over the long term." They also stated their framework marks "a decisive step towards strengthening their common sovereignty in land defence."