There are no objections on competition grounds to Germany taking a stake in the Franco-German armaments company KNDS, the European Commission said on Thursday.
The plans for the German state to take a 40% stake in the company, which makes tanks and artillery, have been approved unconditionally.
KNDS, which manufactures systems like the Leopard 2 main battle tank and the PzH 2000 self-propelled armoured howitzer, is valued at around €20 billion ($23 billion), according to media reports. There are plans for the company, which is headquartered in Amsterdam, to be listed on stock exchanges.
KNDS is currently owned by the German family behind Krauss-Maffei Wegmann and the French state.
In May this year, the German government announced it would take a 40% stake after lengthy debate, as dpa learnt from government sources. It plans to reduce the stake to 30% within three years.
EU competition authorities have now determined that those involved are not active in the same markets and that there are no objections regarding KNDS sales to the German Defence Ministry.
KNDS aims to set up two more production sites in Germany, according to an interview with Germany head Florian Hohenwarter published by the Frankfurter Allgemeine Zeitung daily on Wednesday.
Hohenwarter said no decision had yet been taken on location. He added that employment would double by the end of the decade with up to 5,000 new staff.
