FTC Takes Action to Prevent Anticompetitive Arrangement in Beretta, Ruger Deal

What happened

Under their proposed deal, Beretta is seeking to acquire Ruger stock to increase Beretta’s investment in Ruger to up to 25% of Ruger’s outstanding shares. The proposed deal would allow Beretta to appoint two members of Ruger’s board of directors, which the FTC alleges would create an illegal interlocking directorate arrangement.

The Commission vote to issue the complaint and accept the consent agreement for public comment was 2-0. NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.