The Wall Street Journal is reporting that the proposed $1.91 billion sale of Minnesota-based Vista Outdoor’s ammunition business to Czech company Czechoslovak Group (CSG) has sparked national-security concerns among U.S. lawmakers. Vista is the owner of multiple ammunition companies such as Federal, Remington and CCI and highlights worries about allowing foreign control in a critical industry during global arms shortages.
Former Secretary of State Mike Pompeo and Senator J.D. Vance (R., Ohio) have urged the Treasury Department to block the sale, citing alleged ties between CSG and China and Russia. They argue the deal would threaten U.S. access to domestic small-arms ammunition supplies, which would trickle down from the military to law enforcement and ultimately even to U.S. citizens, crippling every aspect of our country’s ability to defend itself. The Committee on Foreign Investment in the U.S. (Cfius) is currently reviewing the purchase.
Vista Outdoor announced the sale to CSG in October, which is a major supplier of munitions to Ukraine. However, a rival bid from Texas-based MNC Capital Partners, led by Vista board member Mark Gottfredson, is also under consideration. Gottfredson emphasized the need for American ownership, stating, “It needs to be held in American hands.”
Senator John Kennedy (R., La.) expressed concerns about the impact on ammunition supplies, urging Treasury Secretary Janet Yellen to scrutinize the deal. CSG CEO Michal Strnad defended the acquisition, asserting it would strengthen U.S.-Czech relations, both NATO allies.
The controversy reflects heightened sensitivity to foreign influence in the United States and coincides with a global gunpowder shortage. CSG, which has grown significantly under Strnad’s leadership, has been a key arms supplier to Ukraine since Russia’s invasion in 2022.
Cfius, which has blocked foreign deals in the past, is expected to make a final decision soon. Vista’s leadership remains confident in receiving Cfius clearance. The Treasury Department has declined to comment on the ongoing review, emphasizing its commitment to safeguarding U.S. national security.
For the complete story, visit the Wall Street Journal or this link on Microsoft.
Read the full article here
