Defence group Babcock International will join the FTSE 100 index today following a near-50 per cent rise in its share price so far this year.
The company, which maintains Britain’s fleet of nuclear submarines, will be promoted from the FTSE 250 when trading begins this morning. The share price surge means it is now valued at almost £3.7billion.
Babcock shares have soared this year alongside other defence stocks including BAE Systems in the UK and Rheinmetall in Germany, as European countries boost military spending.
The promotion comes as Hargreaves Lansdown leaves the stock market following its £5.4billion takeover by private equity.
On the crest of a wave: Babcock maintains Britain’s fleet of nuclear submarines
The investment platform has been bought by a consortium which includes Platinum Ivy, owned by the Abu Dhabi sovereign wealth fund.
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