KNDS denies Franco-German nationalisation talks

Franco-German tank maker KNDS denied reports on Wednesday that France and Germany were discussing a full nationalisation of the company after it delayed a planned stock market listing.

Handelsblatt reported, citing German government sources, that Paris and Berlin were considering jointly nationalising KNDS. Chairman Tom Enders said in written comments that there were no discussions about full nationalisation.

Enders said KNDS's financial position was “extremely sound” and that its immediate priority remained an initial public offering with the full support of the company's board.

A German government spokesman, asked about the Handelsblatt report, pointed to Enders' statement and said Germany and France wanted to shape the future of KNDS as future joint shareholders with equal rights.

KNDS said last month it would delay its planned flotation, citing market volatility. Under the paused listing plan, France and Germany would each hold 40 percent of KNDS, with the remaining 20 percent available to buy on markets in Paris and Frankfurt.

KNDS was created in 2015 by a merger between Nexter, then owned by the French state, and privately held German firm KMW. It makes Leopard and Leclerc battle tanks, ammunition, artillery and armoured troop transports. The French government currently owns half of KNDS, with the rest controlled by the Wegmann family in Germany.