A few months ago, I mentioned that Beretta was engaged in a hostile takeover bid for Ruger.
Yesterday, the two companies announced a “strategic cooperation agreement”.
This is good news for me, if I want to sell my Ruger stock. (Full disclosure: I own Ruger stock.) As I write this, Ruger is trading at $41.04.
Beretta had been promoting four individuals for seats on the Ruger board. But, according to this agreement, Beretta will “nominate up to two independent directors following the 2026 Annual Meeting of Shareholders and regulatory approval. At that time, the Company will temporarily expand the Board. The nominees will be subject to Ruger’s Nominating and Governance Committee process and qualification criteria.”
Also, per this agreement, Beretta will not, “among other things, initiate or support any proxy contest or similar action,” for at least three years. “These provisions, together with other provisions in the agreement, are designed to safeguard Ruger’s independence and stability while increasing alignment of Beretta Holding with all shareholder interests,” says the release.
I have no idea what this actually means. Will Beretta start selling Ruger guns in their retail stores? I’ve never been to a Beretta retail store: the nearest one to me is in Dallas, and I have the impression that they cater more to people who drive a Bentley or Rolls rather than a Honda. (On the other hand, that Red Label III is supposedly really nice.)
Will Ruger start making more left-handed guns? Or even some ambidextrous ones, like Beretta’s BRX1? That’d be nice.
I report, the market decides. I wish I could give some definitive answer, but I don’t think there is one right now.