Defense Industry Breakup Craze: L3Harris Missile Unit to Go Public with DOD Investment

L3Harris Technologies plans to carve out its missile unit in a public offering, with the Department of Defense as an anchor investor. This marks a departure from the defense industry's trend of consolidation and could signal a shift towards a breakup craze. The Pentagon has warned about the risks of a lack of competition and insufficient accountability for cost overruns and project delays. L3Harris' move could be a response to the Pentagon's willingness to make longer-term demand commitments, allowing companies to think more aggressively about capital allocation.