Pentagon considering taking stakes in defense firms: US commerce secretary

ISTANBUL

The Trump administration's military officials are "thinking about" buying stakes in the major US defense companies, US Commerce Secretary Howard Lutnick announced on Tuesday.

In response to a question in a CNBC interview about whether the Trump administration would seek more deals like the Intel deal with other firms that do business with Washington, Lutncik said: “Oh, there’s a monstrous discussion about defense."

Lockheed, which makes most of its revenue from US federal contracts, is “basically an arm of the US government,” he noted.

“But what’s the economics of that? I’m going to leave that to my secretary of defense and the deputy secretary of defense,” he stated. “These guys are on it and they’re thinking about it.”

The Intel deal, which is seen as a move by the administration to achieve economic goals by exerting more control on the major companies, granted Washington a 10% stake in the firm.

Trump called the agreement “a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.”

He said Monday that he will make deals like the Intel deal for the US "all day long."

"I will also help those companies that make such lucrative deals with the United States," he noted.

ISTANBUL

The Trump administration's military officials are "thinking about" buying stakes in the major US defense companies, US Commerce Secretary Howard Lutnick announced on Tuesday.

Lockheed, which makes most of its revenue from US federal contracts, is “basically an arm of the US government,” he noted.

The Intel deal, which is seen as a move by the administration to achieve economic goals by exerting more control on the major companies, granted Washington a 10% stake in the firm.

Trump called the agreement “a great Deal for America” and said the building of advanced chips “is fundamental to the future of our Nation.”

He said Monday that he will make deals like the Intel deal for the US "all day long."

"I will also help those companies that make such lucrative deals with the United States," he noted.