Budget committee backs Germany's 40% stake in KNDS
Germany's Strategic Move in KNDS Acquisition
Parliamentary Approval and Stake Details
BERLIN, June 26 (Reuters) - The German parliament's budget committee approved the state's acquisition of a 40% stake in Franco-German tank maker KNDS, Defence Minister Boris Pistorius said on Friday.
Equal Shareholding with France
The move enables Berlin to become an equal shareholder alongside Paris in the maker of Leopard 2 tanks and Caesar howitzers, clearing a hurdle for KNDS's planned initial public offering and dual listing in Frankfurt and Paris next month.
Significance of the IPO
The IPO is seen as one of Europe's most significant defence sector flotations in recent years.
Financial and Strategic Implications
Reuters reported earlier on Friday, citing sources, that the budget committee had approved the planned purchase, which is worth up to €7.2 billion ($8.2 billion).
Objectives Behind the Acquisition
Germany's decision is aimed at securing joint control, strengthening oversight of strategic and security matters and underpinning Europe's defence industrial base.
Statements from Defence Minister
"The defence company KNDS is indispensable for the operational readiness of our land forces," Pistorius said in a statement, adding the purchase would put Germany on an equal footing with partner France.
($1 = 0.8804 euros)
(Reporting by Holger Hansen and Florence Loève, writing by Thomas Seythal, editing by Friederike Heine and Milla Nissi-Prussak)
