KNDS Deutschland, KNDS France, Rheinmetall Landsysteme and Thales have finalized the shareholder agreement for the Main Ground Combat System armaments project. The signing took place Thursday in Paris before French Defense Minister Sébastien Lecornu and his German counterpart, Boris Pistorius.
The agreement establishes MGCS Project Company GmbH in Cologne, Germany, to manage the next phase of the Franco-German program, which will replace the Leopard 2 and Leclerc tanks by 2040.
Following contract negotiations with the German Federal Office of Bundeswehr Equipment, MGCS Project Company will serve as the industrial prime contractor and consolidate the system’s concept and key technologies. The new firm will be equally owned by the four partners, each holding a 25 percent stake, with a 50/50 workshare split between Germany and France.
The signing of the agreement follows a letter of intent signed by the companies in June and a memorandum of understanding between the French and German governments in April.
Separately, the German Federal Cartel Office recently approved a joint venture between Rheinmetall and Leonardo for the development and marketing of a new Italian Main Battle Tank and Lynx platform for the Armored Infantry Combat System program. The joint venture, known as Leonardo Rheinmetall Military Vehicles, will be equally owned by both companies with the aim of supporting the Italian Army’s land systems modernization program.