Czech defense firm CSG is attempting to secure a stake in Franco-German armored vehicle producer KNDS, according to a report by Reuters.
CSG recently approached the German family shareholders of KNDS, the defense company behind the Leopard tank and Caesar artillery system.
People familiar with the matter told Reuters the shareholders are instead prioritizing a potential stock market listing and a stake sale to the German government.
The state, however, is reportedly considering acquiring a 30 to 40 percent share in KNDS ahead of any initial public offering (IPO).
KNDS was created through the merger of Germany’s Krauss-Maffei Wegmann and France’s Nexter. The French state owns 50 percent of the company, while German family shareholders control the remaining half.
The Reuters report said that a future IPO could value KNDS at around 20 billion euros ($23 billion).
This reported bid comes during a difficult stretch for CSG, which completed its own IPO earlier this year. Its market value has since fallen sharply amid broader declines in defense stocks and scrutiny surrounding its manufacturing capacity.
Neither KNDS nor CSG publicly commented on the reported discussions.
Defense Firms Accelerate Acquisitions
The reported KNDS approach is part of a wider trend of consolidation and strategic investment across the defense sector over the past year.
KNDS France, in fact, completed its acquisition of Texelis Defense in April, rebranding it as KNDS Mobility and adding drive train and mobility expertise for wheeled and tracked military vehicles.
In March, Leonardo acquired Iveco Group’s defense business in a 1.6-billion-euro ($1.8 billion) deal, while AeroVironment bought California drone maker Empirical Systems Aerospace for about $200 million.
Earlier, in January, Elbit Systems UK purchased UAV Tactical Systems, strengthening its position in European and NATO defense markets.
