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Vista Outdoor (NYSE:VSTO) ticked down by 1.3% amid a report that the Dept. of Justice is looking at the planned sale of its ammo business to Czechoslovak Group over potential antitrust issues.
DOJ antitrust lawyers have held meetings with third parties, including law enforcement groups, that are concerned the combination could lock up that market for primer, the key ingredient used in bullets, according to a Politico report on Tuesday, which cited people familiar with the matter.
The DOJ’s review is in its early stages, and it wasn’t known if the inquiry will lead to a formal probe of the transaction, according to the report.
News of the DOJ probe comes as the deal is already being scrutinized over national security concerns and needs clearance from the Committee on Foreign Investment in the United States (CFIUS). Last month, Vista Outdoor (VSTO) and CSG voluntarily withdrew and re-filed their joint notice to CFIUS with the amended offer to give the committee additional time to conduct diligence on the transaction. The CSG deal has faced resistance from some U.S. politicians.