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Right-wing conservatives object to Vista's deal to sell Federal ammunition to Czech firm

Patrick Kennedy, Star Tribune on

Published in Business News

Higgins, Kennedy and Vance in their letters alluded to connections between CSG Group and Russia or China.

CSG owner and CEO Michal Strnad said in an open letter to Vance that the senator's "assessment of us was profoundly mistaken."

"CSG is one of the most important private supporters of the Ukrainian military effort, a country to which we have supplied much-needed weapon systems dating back to 2018, well before the outbreak of open Russian aggression," Strnad said in the letter. "Since the Russian army's attack on Ukraine, we have supplied the Ukrainian Army — with the help of the government of the Czech Republic and other NATO countries, including the U.S. — over a hundred pieces of heavy equipment and, most importantly, hundreds of thousands of pieces of artillery ammunition, of which we are one of the most important European manufacturers

CSG also is a supplier for the U.S. military and partners with U.S. defense contractors such as General Dynamics and Raytheon.

"Considering the above, any speculation about the CSG's connection to the Putin regime should be considered nonsense," Strnad wrote in his letter. "We understand that the sale of major producers of small caliber ammunition to a foreign company, even if it is a company from a NATO member state that is a close ally of the U.S., attracts well-deserved attention. In today's global world, however, it is not important which allied country the buying company is based, but what its track record is and what value it can bring to the American ammunition manufacturers associated in the Kinetic Group."

On Tuesday, David Štěpán, CSG board member and CEO of its ammunition business, responded to the sheriff's association, reiterating the defense industry ties and adding that several of CSG's businesses hold top NATO security clearances, which would not be possible if it had close ties to Russia or China.

 

In a filing with the Securities and Exchange Commission March 28, Vista said officials remain confident they can meet all the required closing conditions and regulatory approvals, including CFIUS.

CSG Group has gotten CFIUS approval for its 2022 acquisition of Italian ammunition company Fiocchi Munizioni in 2022. That deal included the Fiocchi America business which required CFIUS approval.

A major concern involving any large deal revolves around front-line employment. CSG has said that there would be no major changes to employment if they acquire the sporting products group.

"CSG has always been supportive of workers, managers and leaders who are committed to their jobs and the company's vision," said Štěpán in an email. "We are a technology-based industrial group that understands the importance of a quality workforce and a strong leadership team."


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