The Trump administration is weighing acquiring equity stakes in U.S. defense contractors, Commerce Secretary Howard Lutnick said on Tuesday.
Lutnick said in an interview on CNBC’s “Squawk Box” that military leaders in the Trump White House are considering whether the administration should acquire equity stakes in defense companies after it acquired 10% of Intel’s stock for $9 billion.
“Oh, there’s a monstrous discussion about defense,” Lutnick said. “I mean Lockheed Martin makes 97% of their revenue from the U.S. government.”
“They are basically an arm of the U.S. government. They make exquisite munitions. I mean amazing things that can knock a missile out of the air when it’s coming towards you,” Lutnick said. “But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense. These guys are on it and they’re thinking about it.”
Lutnick also said that “a lot of talking” needs to be done regarding how the U.S. finances its munitions acquisitions.
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FOX Business reached out to Lockheed Martin for comment.
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