Lafayette Reporter

WASHINGTON – Sen. John Kennedy (R-La.) has urged the Biden administration's Committee on Foreign Investment in the United States (CFIUS) to conduct an investigation into the proposed acquisition of U.S. ammunition producer Vista Outdoor Sporting Products by the Czechoslovak Group (CSG).

In a letter addressed to Treasury Secretary Janet Yellen, who chairs the CFIUS, Sen. Kennedy expressed concerns about the deal, citing potential national security implications due to CSG's ties to China and their recent acquisitions in the ammunition market. Kennedy highlighted the risk of the U.S. military and law enforcement becoming overly reliant on a single contractor and foreign suppliers for ammunition and primers.

Kennedy emphasized the need for CFIUS to scrutinize the acquisition thoroughly, particularly in light of questions surrounding CSG's relationships with China and their attempts to downplay any connections with U.S. adversaries.

The proposed acquisition, valued at $1.9 billion, is part of a trend of significant consolidation in the global ammunition market, with European companies like Beretta and CSG making notable acquisitions in recent years. Despite receiving antitrust approval from U.S. regulators, the deal is still pending a national security review by CFIUS.

Sen. Kennedy's call for a CFIUS investigation underscores the importance of safeguarding the U.S. military and law enforcement's access to a secure and domestically sourced supply of ammunition and primers amidst growing concerns about foreign influence in the industry.