Looks like it is official: https://www.reuters.com/article/czg...uys-colt-in-cash-and-stock-deal-idUSL1N2KH3HO
I think that, at least in the short term, we're unlikely to see Colt move from CT. Even as anti-2ndA as CT is, Colt is Union, and moving union jobs away quickly becomes political, and costly. I'm not sure it would be economically feasible in the short term. Long term, expansion with new facilities in other states might be one way to avoid problems. ........................
......................As for what they might do, I think buying Colt is going to be their entry into competition for military and law enforcement contracts. With a manufacturing presence here, and Colt's history, they'll have a leg up on most of the Euro makers. CZColt will be a serious competitor for any future replacement of the AR by the US military.
There's no merger. CZ didn't join Colt.So the two kings of backorders have merged. Oh well, business as usual.
CZ purchased Colt.
That negotiation is going to be incredibly short because CZ holds the cards, not the union.
I agree that civilian sales is where the money is, so CZ will likely focus on that aspect.I believe the primary target of CZ was the Colt AR brand to strengthen their military and police sales. I also don't think they will throw the civilian Colt line under the bus.
You are correct. It was an acquisition, not a merger. I misspoke.There's no merger. CZ didn't join Colt.
CZ purchased Colt.
And Union contracts aren't worth the paper they're printed on if one half of that contract (the company) no longer exists.
CZ is not bound by Colt's prior agreements with union employees. They can simply fold up their tent and leave.
If CZ decides to relocate the manufacturing to a non-union state, those union workers can move with the company OR they can stay in Connecticut and find employment elsewhere.
That negotiation is going to be incredibly short because CZ holds the cards, not the union.