Vista Outdoor receives US government committee approval for sporting unit sale to CSG

Vista Outdoor

25/06/2024 23:12

June 25 (Reuters) - Vista Outdoor  VSTO.N  and
Czechoslovak Group (CSG) said on Tuesday that they had received
regulatory approval from an interagency committee of the United
States government for the proposed sale of Vista's sporting
products and ammunition business to the Prague-based defense
firm.
    The clearance from the Committee on Foreign Investment in
the United States (CFIUS) was the final regulatory approval
required under the merger agreement with CSG for the closing of
the sale, the companies added. 
    The committee reviews transactions involving foreign
investment in the U.S. to determine their effect on national
security.
    "Vista Outdoor and CSG received written notice from CFIUS
that CFIUS has concluded its review and investigation of the
transaction and has determined that there are no unresolved
national security concerns," the companies said in a statement.
    On Monday, Vista said it had agreed to sell its sporting
products and ammunition business to CSG for about $2 billion,
after the Prague-based defense firm raised its offer for a
second time.
    The sale of the Kinetic Group, Vista's sporting unit, has
attracted multiple bidders as demand for military supplies rose
after Russia's invasion of Ukraine.
    Vista's sale to CSG remains subject to approval from the
company's shareholders, and a special meeting is set to be
conducted virtually on July 2.
    Shares of Vista were up about 5% in extended trade.

 (Reporting by Juveria Tabassum; Editing by Alan Barona)
 ((Juveria.Tabassum@thomsonreuters.com;))