- The competing interests among Heckler & Koch's shareholders have been resolved.
Heckler & Koch's handgun sales are on the rise, but the company's shareholder drama has made headlines. The power tussle between major shareholders Andreas Heeschen and CDE reached a conclusion with the Federal Court of Justice rejecting Heeschen's non-admission complaint (File No. XI ZR 8/24).
This move aimed to preserve Heeschen's influence at Germany's leading handgun manufacturer. However, a Frankfurt Higher Regional Court ruling declared CDE as the true majority holder, with more than 80% of the voting rights. As a result, Heeschen finds himself in a minor role.
Heckler & Koch celebrated the legal clarity, stating that a contentious corporate law issue had been resolved. CDE applauded the decision, noting that it bolstered their position and ensured stability for the company's growth. Heeschen, on the losing side, remained silent.
The contentious share package controversy at a shareholder meeting caused commotion, leading to an unprecedented adjournment of the Annual General Meeting. With less than 50% share capital representation and unmet minimum participation, the meeting concluded abruptly. Post-BGH decision, Heckler & Koch no longer suffers from such uncertainties.
Heckler & Koch, boasting over 1,100 employees, is the premier German manufacturer of small arms, including assault rifles, machine guns, pistols, and grenade launchers. Main customers include the German Armed Forces.
Since the Russian invasion of Ukraine, weapon demand witnessed a substantial surge. This uptick has proven beneficial for Heckler & Koch, positioning it alongside global veterans such as Haenel, Beretta, Sig Sauer, FN Herstal, and more recently, CZG, which in 2021 acquired Colt.
- Despite the legal resolution in Luxembourg, the Heckler & Koch shareholder, Heeschen, has been relegated to a minor role following the Frankfurt Court's ruling in favor of CDE.
- The Commission, responsible for overseeing the German arms industry, has been closely monitoring the shareholder disputes at Heckler & Koch, given the company's significant contributions of handguns and other small arms to their primary customer, the German Armed Forces.
- Despite facing controversy and opposition from a dissenting shareholder, known as the 'heckler,' Heckler & Koch has finally managed to resolve their shareholder drama, which has been a source of uncertainty for the company, especially in light of the increasing demand for handguns and other weapons due to global conflicts.