Armin Papperger, CEO of German defense company Rheinmetall AG, intends to acquire a stake in rival KNDS NV to create the largest manufacturer of defense products in Europe and unite the fragmented European market. This is reported by foreign media with reference to an interview with A. Papperger.
A. Papperger held talks with representatives of the government and the KfW State Development Bank regarding the merger of the two tank-building companies.
A. Papperger plans to acquire a significant stake in KNDS from the owner, who controls 50%, the remaining shares belong to the French government. Rheinmetall has also expressed interest in acquiring the German KNDS division, which merged with France's Nexter about a decade ago to create KNDS. The German division, formerly known as Krauss-Maffei Wegmann, currently provides most of KNDS' business.
From the analysts' point of view, any Rheinmetall investment in KNDS will face opposition from the company and the French government, which has a say in any corporate or ownership decisions. The German government is also considering the possibility of acquiring a stake in KNDS, including a blocking minority in order to gain influence.
The European defense industry, unlike the American one, remains fragmented with dozens of competing land, sea and air programs, limiting the scale of production and coordination of procurement.
At the moment, KNDS and Rheinmetall are jointly developing several major ground systems, including the Boxer armored personnel carrier, the Puma infantry fighting vehicle and the Leopard main battle tank.
In 2025, Rheinmetall shares increased by 158%, and sales increased by 1 billion euros, compared with 2024. The company has traditionally specialized in the development of land systems and ammunition, but in September it agreed on the production of Luerssen naval ships. In 2024, Rheinmetall acquired Loc Performance, a military equipment manufacturer, to strengthen its position in the United States, and in 2022 it acquired Expal Systems SA, a Spanish ammunition manufacturer.
KNDS continues to prepare for an IPO, during which a double listing may be carried out in Paris and Frankfurt or in Amsterdam. KNDS expects a value estimate of 20 billion euros (23.3 billion).
KNDS is a Franco—German defense company formed as part of the merger of German Krauss-Maffei Wegmann (KMW) and French Nexter Systems. The company manufactures military ground systems, including main battle tanks, armored vehicles, artillery systems, ammunition, and military bridges. The staff consists of 10,000 people, and the company's turnover is 3.8 billion euros, the volume of deferred orders is 23.5 billion euros. The headquarters is located in Amsterdam (the Netherlands).
Rheinmetall AG is a German concern for the production of military equipment and weapons in Germany and Europe. The headquarters is located in Dusseldorf (Germany).
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