The company KNDS, one of the pioneers in the arms industry in Europe, has recently announced that its plans for a public stock offering have been suspended due to unexpected market fluctuations. This company, known for manufacturing the famous Leopard 2 tank, stated in a press release that it will not proceed with the stock offering until market conditions improve.
Major Challenges for KNDS's Competitors
While KNDS was seeking to attract investment in the stock market, challenges arose in convincing investors to value the company at over 12 billion euros. Recently, the stocks of competitors like Rheinmetall have also sharply declined, and this situation has impacted KNDS's decisions.
Given the recent agreement between the governments of Germany and France regarding the ownership structure of this company, it was expected that KNDS would soon begin its public stock offering. According to this agreement, both countries will hold 40 percent of the company's shares, with the remaining 20 percent to be sold on the stock market. These changes come as KNDS was established in 2015 through the merger of two companies, Krauss-Maffei Wegmann and Nexter, and currently employs over 11,000 people.
