The German government is in talks to acquire the 50 percent of KNDS, the Franco-German maker of the Leopard 2 tank, that is held by the German owner families through Wegmann Holding, according to a person familiar with the matter cited by Reuters on Wednesday. Negotiations are ongoing and the parties are not far apart on price, the person said, and Handelsblatt, which first reported the talks, said a decision is expected in the coming weeks. Plans for an initial public offering of KNDS, which would have been among the European defence sector’s largest listings, have been put on hold after conditions for a listing deteriorated this year.
Under the earlier plan, the families and the French state, which holds the other 50 percent, were each to sell 10 percent stakes to investors, with the families’ remaining 40 percent going to the German state. The economy ministry said on Wednesday that the government is considering acquiring a stake on an equal footing with France to protect key defence industry technology, and that the decision on buying and selling shares rests with the shareholders. KNDS declined to comment on the discussions and said only that an IPO remains its objective; the families declined to comment.