Leadership and Companies
FTC Bars Beretta From Placing Non-Independent Directors on Ruger Board
The FTC proposed an order restricting Beretta’s ability to appoint directors to Ruger’s board under its stock purchase agreement.
What happened
The FTC accepted a proposed consent order addressing antitrust concerns in Beretta’s plan to raise its Ruger stake to as much as 25%. Beretta cannot appoint or nominate Ruger directors unless they are independent of Beretta. The order also requires 15 days’ advance notice to the FTC and restricts certain relationships involving nominated independent directors.
Why it matters
The order is designed to prevent board overlap, sensitive-information sharing and coordination between two major firearm manufacturers under Section 8 of the Clayton Act.
Source: FTC News