'Sale Of Big U.S. Ammo Business Could Hit Antitrust Snag; The Purchase Of Vista Outdoor's Ammo Business By Czech Company CSG Group Is Under National Security Scrutiny, But Critics Say It Will Also Cause Too Much Concentration In The Manufacture Of A Key Component For Bullets' - Politico
Portfolio Pulse from Benzinga Newsdesk
The sale of Vista Outdoor's ammunition business to Czech company CSG Group is facing scrutiny from the DOJ's antitrust lawyers and the Committee on Foreign Investment in the U.S. (CFIUS). Concerns include market concentration and national security. The DOJ's antitrust inquiry is in early stages, and the CFIUS review could conclude soon. Vista controls a majority of the U.S. primer market, and the acquisition could lead to greater pricing power for CSG. A competing bidder, MNC Capital, has also made a higher offer for Vista's ammunition business.
June 25, 2024 | 2:56 pm
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Vista Outdoor's sale of its ammunition business to CSG Group is under scrutiny from DOJ antitrust lawyers and CFIUS due to concerns about market concentration and national security. A competing bid from MNC Capital adds further complexity.
The scrutiny from both DOJ and CFIUS introduces significant regulatory risk, which could delay or block the sale. This uncertainty is likely to negatively impact Vista Outdoor's stock price in the short term.
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