FTC Limits Beretta’s Influence Over Rival Sturm Ruger

The regulatory intervention follows Beretta’s aggressive move to increase its investment in the Mayodan, North Carolina-based company to 25 percent. This acquisition was intended to resolve a protracted proxy battle, during which Beretta repeatedly challenged Sturm Ruger’s management. Under the original terms, the Italian manufacturer aimed to secure two seats on the American company’s board.

Under the FTC’s mandate, Beretta is barred from appointing non-independent members to the Sturm Ruger board. Any future nominations must be reported to the commission at least 15 days in advance. Furthermore, Beretta is prohibited from establishing financial relationships with the independent directors it helps appoint, effectively neutralizing the risk of coordinated strategy between the competitors. The agreement addresses federal laws prohibiting interlocking directorates, ensuring that neither firm can exert undue control over the other's internal operations.