The German government will buy a 40% stake in European tankmaker KNDS from the families which own it, with a plan to bring its share to the same level as that held by the French government.
It sets the stage for a long-awaited IPO (initial public offering) for KNDS on the stock exchange. Berlin had been keen to have an equal share to France before the listing.
The stake is expected to be worth around €6 billion, depending on the valuation of the company. The plan still requires approval from the German Bundestag's budget committee.
France currently owns 50% of KNDS. The countries said in a joint statement that they had agreed on "the strategy and governance" of the company, and that they aim to maintain equal shareholding levels in the future.
According to multiple media reports quoting people close to negotiations, France will soon reduce its share to 40%, so that both governments hold the same share. The remaining 20% is expected to be sold in the IPO, on both the Frankfurt and Paris exchanges.
