Business · Companies · 10 hrs ago
Germany to pay reported €6.6 billion for 50% stake in KNDS
The German government has agreed to buy the German owners’ 50% stake in KNDS, a German-French maker of armoured vehicles.
A media report says the government will pay €6.6 billion for the stake.
The reported price is based on a company valuation of €11.2 billion before a planned stock-market listing fell through, plus a €1 billion premium.
The government’s aim is to protect key armoured-vehicle technologies and ensure Germany does not lose influence to France, KNDS’s other major shareholder.
A document seen by Reuters said the price was below the up-to-€7.2 billion once reserved for a 40% stake; it did not give a final figure.
The purchase contract is expected to be signed in November.
Germany is reportedly paying €6.6 billion for a 50% stake in the German-French defence company KNDS.
The amount was reported by Der Spiegel, citing parliamentary sources.
The reported price is based on a company valuation of €11.2 billion and a €1 billion premium.
Germany had agreed to acquire the 50% stake from the German owner families.
The purchase contract is expected to be signed in November.
The government says its investment aims to protect key armoured-vehicle technologies and preserve Germany’s position alongside France.
- Who
- The German government and the German owner families of KNDS.
- What
- Germany is reportedly paying €6.6 billion for the families’ 50% stake in KNDS.
- When
- The purchase contract is expected to be signed in November; the year is not stated.
- Where
- Not stated.
- Why
- The government aims to protect key technologies in armoured-vehicle manufacturing and prevent Germany from falling behind France as a major shareholder.
This story does not have two clearly opposing sides.
It became known that the German government had agreed with KNDS’s German owner families to acquire their 50% stake.
Der Spiegel reported that the price would be €6.6 billion, citing parliamentary sources.
The purchase contract is expected to be signed.
- Reported purchase price
- €6.6 billion
- Stake
- 50% of KNDS
- KNDS valuation
- €11.2 billion
- Reported premium
- €1 billion
- Expected contract signing
- November