Three potential takeover candidates for 2026: Puma, RENK, and CHAR Technologies

CHAR Technologies: Revolutionary technology and strong partners

Energy was one of the big topics in 2025 and will likely continue to occupy stock market traders in 2026 and beyond. This is because demand driven by the energy hunger of AI data centers is colliding with the goal of reducing fossil fuel sources and decarbonizing industry as a whole. However, many stocks in the energy sector have already performed very well. Another hidden gem in this sector is CHAR Technologies. The Canadian technology company has recently become tradable on the Frankfurt Stock Exchange and is likely to be discovered by more and more investors in the coming weeks. Its market capitalization is still well below EUR 50 million. The potential of the technology is huge.

CHAR Technologies' business model is also important for Germany: replacing coal and natural gas with biomass. In an interview with Lindsay Malchuk from the IIF, CEO Andrew White gave a detailed presentation of the Company and its future prospects. He emphasized the strategic importance of commissioning the first high-temperature pyrolysis plant in Thorold, marking the transition from pilot projects to operational use. Test runs with industrial customers will lead to a recurring business model with commercial production volumes, predictable revenues, and prospective cash flow - a decisive step in a sector that often fails due to capital intensity and scaling risks.

The core of CHAR's technology is the conversion of forestry residues – of which there is more than enough in Canada – into marketable products such as biochar (a substitute/supplement for fossil carbon in steel production) and biogas. White emphasizes that the Company is deliberately securing scaling through partnerships along the value chain: ArcelorMittal is not only an investor, but also a customer through its Canadian subsidiary Dofasco. The BMI Group is an interesting 50/50 joint venture partner. The Canadian group specializes in the conversion and revitalization of old paper and industrial plants. For raw material supply, the Company works with Lake Nipigon Forest Management (owned by First Nations communities). This reduces the three key project risks - secured biomass, available infrastructure, and contractually secured demand - and turns a decarbonization story into a deliverable industrial project.

White also explains why CHAR is relying on a modular rollout model: Biomass is geographically distributed, which is why overly large central plants can create logistical disadvantages. Smaller units are intended to secure supply while stabilizing forestry through additional sales channels for residual materials. The products are nevertheless marketable globally. Biogas can be transported via the pipeline system, and biochar can even be delivered as compressed pellets to markets with strong decarbonization incentives, such as Europe. CHAR Technologies is also supported by the Canadian government in terms of financing. The government sees the strong promotion of domestic companies not only as an opportunity to decarbonize its own country by 2050, but also to supply the world with clean energy.

Overall, CHAR Technologies appears to be at the beginning of an interesting stock market story, and if the technology is rolled out, a takeover by a large corporation is not unlikely. Several financially strong partners are already on board.

https://youtu.be/NM6RiILMS-k?si=rApnE63U6xUIu7lu

RENK: Will KNDS make a move in 2026?

Will RENK be acquired in 2026? It may sound crazy at first, but there is a very realistic scenario. Namely, a takeover by KNDS. The German-French tank manufacturer already has a stake in the Company and exercised an option in 2025 to become RENK's anchor shareholder. After a lengthy back-and-forth, KNDS acquired RENK shares from private equity firm Triton and increased its stake from 6.7% to 25% plus one share.

The issue is also interesting from a capital market perspective because KNDS is preparing a dual IPO in Paris and Frankfurt for 2026, and needs a robust growth and equity story to support its IPO. With an M&A strategy, the defense contractor could set itself apart from the "mere" full order books that otherwise prevail in industry. The personnel transfer also fits into this picture. Former RENK CFO Christian Schulz has been appointed to the KNDS board and will use his IPO experience to guide the next steps. This is a detail that tends to fuel rather than dampen speculation about a more active M&A agenda.

A possible M&A strategy could kill two birds with one stone. It would sharpen KNDS' IPO narrative ("scaling, access to capital, industrial capacity") and at the same time underpin the industrial logic of integrating RENK more closely as a key supplier (drive/propulsion). The political orientation also provides tailwind. In Brussels, there have been arguments for some time that Europe's defense industry needs to be less fragmented and function more like a single market, implicitly to build competitive champions and reduce production costs. The perfectly reasonable idea of "moving closer together to form global corporations" is, of course, as so often in the EU, at odds with national interests. This is currently evident in the dispute between Germany and France over the leadership role in the next-generation fighter jet (Next Generation Fighter).

Puma: Analysts see around 30% takeover premium

There were already more concrete takeover speculations at Puma in the second half of this year. In September, Manager Magazin reported on a possible takeover. At that time, the share price reacted cautiously. The situation changed at the end of November, when Bloomberg reported serious interest from Chinese companies in the traditional German brand. According to the report, sporting goods giant Anta Sports, among others, was considering a takeover. Anta Sports is expanding rapidly, including through acquisitions outside China. However, Li Ning, a company that is relatively unknown in Germany, could also potentially acquire Puma. There is also interest from Japan in the form of Asics. DZ Bank then followed suit, reporting that Anta Sports could offer EUR 27.50 per Puma share. Amid the speculation, Puma's share price rose from just under EUR 16 to over EUR 23 within three weeks. In the days before Christmas, however, they fell to EUR 21.55. The reason was likely weak industry sentiment following Nike's disappointing figures.

Low market capitalization, revolutionary technology, and takeover speculation are all reasons to buy CHAR Technologies shares. The Company is an attractive new player in the energy sector. A takeover of RENK by KNDS seems entirely reasonable, but is likely to be politically difficult. Puma is a strong brand and is certainly interesting in the long term, and takeover speculation should provide downside protection for the stock.