The Bundeskartellamt, Germany's competition authority, has cleared the acquisition of shares in RENK Group AG by KNDS N.V. This acquisition will increase KNDS's stake in RENK to 25 percent plus one vote. RENK specializes in manufacturing transmissions and suspension systems for military vehicles, playing a crucial role in supplying components to the Bundeswehr and other NATO forces.

KNDS, a Franco-German arms manufacturer formed from the merger of Krauss-Maffei Wegmann and Nexter, does not intend to gain control over RENK but rather a minority stake. The Bundeskartellamt's President, Andreas Mundt, stated that the two companies operate at different market levels, and the acquisition is not expected to disadvantage other system integrators that source components from RENK.

The authority conducted a thorough investigation to assess whether RENK might prioritize KNDS in the event of supply shortages. However, findings indicated that RENK's production capacity significantly exceeds KNDS's demand, making customer foreclosure economically unviable. Additionally, the competitive landscape is influenced by various cooperation projects in the defense sector, ensuring that other customers remain well-served.

Furthermore, the development and testing of military vehicle systems are heavily influenced by government specifications, which can affect supplier choices. The presence of alternative suppliers for after-sales products and services also mitigates potential competitive concerns.