Warship Maker Babcock to Join FTSE 100 After Defense Rally (1)

British warship maker Babcock International Group Plc will rejoin the FTSE 100 index amid a rally in defense stocks as Europe ramps up security spending.

The London-based firm will replace Hargreaves Lansdown Plc in the benchmark on Monday, FTSE Russell said in a statement. A spot is opening up in the index because Hargreaves has agreed to a takeover by a group of private equity firms.

Babcock shares have risen 51% this year and are set for their biggest quarterly gain since 2001. European nations are vowing to rearm as the US under President Donald Trumpreduces support for its allies.