STORY: Germany will acquire a 40% stake in Franco-German defense equipment group KNDS when it lists on the stock market.That was according to a German official on Wednesday.It matches the size of France’s stake in the maker of the Leopard tank.The official, speaking on condition of anonymity, said both governments would be expected to reduce their stakes to 30% over the next two to three years.Adding that both would hold equal voting rights regardless of the size of each stake.The agreement followed weeks of negotiations between the two governments over KNDS.It’s now jointly owned by the French government and the German family owners of the former KMW – which was merged with France’s Nexter into KNDS.The families aim to divest their entire stake via an initial public offering in Frankfurt, expected in June or July.Sources told Reuters this month that it could value KNDS at over $23 billion.The official said the price of the stake acquired by Germany would depend on the market price.European defense dealmaking has come into sharp focus as relations with the U.S. have frayed.The continent has scrambled to rebuild militaries that had been allowed to wither after the Cold War ended.
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