The black-red coalition has agreed on the German government's entry into tank manufacturer KNDS. The federal government is to initially acquire 40 percent of the shares.
The German federal government plans to acquire 40 percent of the shares in the German-French defense company KNDS. Coalition leaders reached the agreement on Wednesday evening after weeks of discussions. The stake is to be reduced to 30 percent within two to three years.
This secures the federal government equal influence with the French state. Important decisions on locations or jobs can only be made jointly in the future. The rights remain in place even if the German share is reduced.
The Federal Ministry of Economics under Katherina Reiche leads the negotiations and coordinates with the Defense Ministry of Boris Pistorius. The entry is to take place via the KfW bank and pave the way for an IPO of the company. KNDS plans to offer up to 20 percent of the shares in Frankfurt and Paris.
