Earth’s armament: the threat of dismantling hangs over the Franco-German group KNDS

Announced in 2014, the rapprochement of French Nexter Systems with the German Krauss-Maffei Wegmann resulted in the creation of a holding company, called KNDS, owned equally by the French State and the Bode-Wegmann family. Therefore, What makes its capital structure are “hybrid” insofar as private and public interests rub shoulders. Nevertheless,

In March. For example. Meanwhile, the Reuters agency reported that KNDS was considering an IPO to take advantage of the enthusiasm of investors for the values linked to the arms industry. Furthermore, At least it was partly true … Meanwhile,

Indeed, the Bode-Wegmann family, owner of Knds Deutschland [ex-Krauss-Maffei Wegmann]intends to yield part of its earth’s armament: threat dismantling hangs new 50 % participation within KNDS. However. Furthermore. Consequently, for this, two solutions are available to it: an earth’s armament: threat dismantling hangs IPO or the acquisition of its shares by one or more thirds. Therefore, In one case as in the other, this can only have consequences on KNDS France.

Given that parity between French. Germans must be scrupulously respected. so that a IPO is possible, the two KDNS shareholders should be able to separate from the same percentage of shares that they hold one and the other.

However, according to the press from across the Rhine, the Bode-Wegmann family would like to disengage up to 12.5 %. Which means that Paris will have to do the same. Since KNDS is valued at 20 billion euros. the French government could be inclined to accept such an operation, especially since it would bring it 2.5 billion euros.

For earth’s armament: threat dismantling hangs new its part, reports the newspaper “Börsen-Zeitung”, its German counterpart would consider a “minority blocking equity”, up to 25.1 %, with the Bode-Wegmann family. earth’s armament: threat dismantling hangs

Be that as it may. an IPO of KNDS can only interest Rheinmetall. with its solid turnover and its order book valued at more than 55 billion euros.

“If Knds enters the stock exchange. an opportunity arises to do something, then we will seize it,” warned Armin Papperger, his CEO. And this while. in 2018, the Düsseldorf group had acquired a majority participation in the capital of Knds a long -term objective.

If the hypothesis of an IPO is dismissed. then Rheinmetall could happen in part for its ends by taking up the shares from which the Bode-Wegmann family. intends to separate. Other players are on the ranks, including German wealth management funds and investment companies.

However, the earth’s armament: threat dismantling hangs new Bloomberg agency spoke of a third possibility. If the first two could not materialize. then the Bode-Wegmann family would go so far as to consider the dismantling of earth’s armament: threat dismantling hangs. Knds in order to escape the rules decreed at the time of the creation of the holding company. Clearly, French and Germans would each take up their “marbles” … and the project of the main land combat system [MGCS – Main Ground Combat System] could suffer from it …

“This option is currently considered only as a fallback solution. But it could be favored by certain German parliamentarians and unionists, ”says Bloomberg.

In the meantime. this question should be addressed during the meeting between President Macron and the German Chancellor, Friedrich Merz, scheduled for July 23. The subject of SCAF governance [Système de combat aérien du futur] should also be.