The German-French defense giant KNDS has postponed its IPO, sparking political backlash and industry concerns.

KNDS, the manufacturer of the Leopard 2 tank and Panzerhaubitze 2000, has announced a delay in its planned IPO due to unfavorable market conditions. The company had aimed for a dual listing in Frankfurt and Paris, potentially valuing the firm at over €12 billion. The decision comes after reports of difficulties convincing investors of the valuation. Despite this setback, the German government remains committed to acquiring a 40% stake in KNDS alongside France, with 20% intended for institutional investors.

The Greens have sharply criticized the situation, calling it a ‘disaster for the federal government’ and blaming ‘strategic missteps’ and the ‘greed’ of KNDS’s billionaire owners. Sebastian Schäfer, a budget spokesperson for the Greens, accused the family behind Krauss-Maffei Wegmann of holding the state hostage during a critical security period. The German government, however, insists that its partnership with France will secure mutual security interests and guide KNDS toward a successful future.