Critical Defense Ownership Review Act

The Critical Defense Ownership Review Act requires the Department of Defense to review any merger or acquisition where an investment company gains at least 25 percent ownership or control of a major defense supplier. Before such a transaction can proceed, the involved parties must submit a premerger notification to the Department of Defense, which will assess the deal's impact on national security, competition, supply stability, and the financial health of the supplier. If the review identifies potential risks, the Secretary of Defense must report these findings to the Federal Trade Commission or the Department of Justice within 30 days. Additionally, the bill mandates a triennial review every three years to evaluate how past mergers and acquisitions have affected the overall health of the defense industrial base.